The minister of power, Adebayo Adelabu on Thursday, November 30, said the objective of making the 2023 Electricity Act is to improve energy supply.
He vowed that the citizenry would soon record improved power supply nationwide.
He spoke at the 3rd edition Workshop of the Power Correspondent Association of Nigeria (PICAN) in Abuja.
The theme of the workshop was: “Resolving Nigeria’s Power Crisis: The Implication of the Electricity Act 2023.”
He said: “Taking all the above into consideration, especially with the liberalization of the sector, Nigerians will soon start to experience the objective that led to the Act which is improved power supply across the country.”
The minister noted that a key part of the 2023 Electricity Act is the development of the Integrated National Electricity Policy and Strategic Implementation Plan.
He revealed: “On this, we are working with the National Council on Power (NCP) to develop and send the implementation strategy to the Federal Executive Council (FEC) for approval.”
He revealed that part of the federal government’s in its roadmap, is the emphasis on the bottom-up approach, unlike the top-down approach of the past.
According to him, the implication, with the bottom-up approach is that we will prioritize Metering, Distribution and Transmission infrastructure.
He added that the administration will focus on Customers down to distribution and transmission infrastructure in the short term, this is to ensure that a significant portion of what is generated currently gets to the end users.
Adelabu also said: “We will also pay attention to the generation segment particularly in areas of distributed (embedded) power from renewable energy sources, while at the same time, advancing baseload power through thermal and hydro plants in the medium to long term.
“We will further explore our regional energy potentials. We will focus on solar energy in the North, mini hydro power plants in the Middle belt and the Southwest, hybridized with solar while our coastal States will be identified for wind energy utilization.”
He tasked the media to stress advocacy to emphasise power theft, and vandalization and educate consumers against sabotage.
He also charged them to amplify that the financial liquidity in the Nigerian Electricity Supply Industry (NESI) is dependent on customers paying for electricity consumed.
He described the theme as quite apt, considering President Bola Tinubu’s avowed desire to provide a regular supply of electricity across the country by liberalizing the power sector through the enactment of the 2023 Electricity Act.
He said the 2023 Electricity Act is a significant part of our country’s energy roadmap as it signifies the present administration’s commitment to the transformation of the power sector as clearly stated in the agenda of Mr President as contained in the Renewed Hope Agenda.
According to him, the Electricity Act has liberalized electricity generation, transmission and distribution.
Adelabu noted that it has also empowered States, Organisations and even individuals to generate, transmit, and distribute electricity. Under this Act, the minister said the state government can issue licenses to private investors to operate power plants and mini-grids, within the States.
He added that private investors can also obtain licenses for generation, transmission, system operations, trading, distribution, and supply.
The Act, according to Adelabu, can also encourage the integration of renewable energy technologies into the existing grid system while licensees are expected to meet renewable energy obligations as stipulated by the Nigerian Electricity Regulatory Commission (NERC).
He added that among others, the Act also introduced mechanisms for incentives for investment in the sector.
He said such incentives include feed-in-tariffs which guarantees a fixed price for renewable energy fed into the grid and tax incentives for investors.
The minister said to ensure a level playing field for all players in the sector and prevent anti-competitive practices, the Act also provides clear guidelines for the licensing, monitoring and supervision of market participants.
He further noted that the Act guarantees asset protection by allowing investors to sell or transfer their undertakings in the event of revocation of licenses or compensation in the event of takeover of such undertakings.
Adelabu said: “Therefore when we consider the totality of the re-enacted Electricity Act, it has changed the entire landscape of the power sector.
“What this implies is that everyone involved in the power sector value chain must contribute meaningfully in ensuring the successes that are envisaged by the enactment of the Act.”
In his remarks, PCAN chairman, Mr Obas Esiedesa, recalled that on November 1, 2013, the federal government handed over the distribution and most generation assets to the private sector, marking the beginning of private investment into the NESI.
According to him, since then, expectations raised by the entrance of private entrepreneurs into the sector have largely remained unmet.
He said that 10 years down the line, the time has come for the Federal Government to take a holistic review of the entire Power sector privatization.
Esiedesa said what is now expedient is not necessarily taking away the assets from operators, but finding solutions to the huge challenges facing the industry.
Credit: thenationonlineng.net
