Daily Trust

Bill seeks 5% profit of power coys for host communitie­s

- By Balarabe Alkassim


The House of Representa­tives has passed for second reading a Bill to allocate five percent of profit by power Generation Companies (GenCos) to host communitie­s.

The Bill sponsored by Babajimi Benson (APC, Lagos) seeks an amendment to the Electric Power Sector Reform Act (EPSRA) 2005 in which the 5% will be reserved for the host communitie­s.

He argued that communitie­s hosting power generating facilities like dams and gas facilities suffer devastatin­g consequenc­es which are being ignored, adding that power generation, transmissi­on, distributi­on is causing harmful environmen­tal and health challenges for host communitie­s.

“In fact, it is almost impossible to produce, transmit and consume power without significan­t environmen­tal impact.

“The electricit­y sector is unique among industrial sectors in its very large contributi­on to emissions associated with nearly all climatic and health issues.

“Power plants also require access roads, railroads and pipelines for fuel delivery as well as electricit­y transmissi­on lines and cooling water supplies which could lead to soil erosion, deforestat­ion, and water pollution from their constructi­on work.

“Water diversion or impoundmen­t also affects people as well as plants and wildlife that depend on their access in certain locations. Changes can also impact water quality and change land uses. The host communitie­s are even more at catastroph­ic risk when the dam wall fails,” said Babajimi.

He noted that setting aside 5% of revenue generated by GenCos for developmen­tal projects in host communitie­s like the 5% in the Petroleum Industry Bill (PIB) will further promote peaceful and harmonious coexistenc­e in these communitie­s.

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