A new lease of life is underway in communities hosting Power Generating Companies (GENCOs) as the process of amending the Electricity Act was closer to being completed by the National Assembly.
This is as the Senate has concurred to the Bill seeking to amend the Electricity Act, 2023, to address concerns of host communities (Hostcoms), sponsored by Hon. Babajimi Benson, member of House of Representatives, representing Ikorodu Federal Constituency of Lagos State.
The bill seeks to expunge
section 95(2c and d) of the principal Act to include Igeregu Power Plant in the schedule of the GENCOS in the country and discontinue the release of host communities’ 5% fund to Hydro Producing Areas Development Commission (HYPADEC).
Reacting to Senate’s concurrence to the bill, Hon. Benson said when the proposed legislation gets presidential assent, it will go a long way in generating 5% of the actual GENCOs operating expenditure around the Egbin thermal power station in his constituency for the benefit of the host community and same for those in other parts of the country.
The Chairman, House Committee on Defence, said: “The Senate of the National Assembly concurred to the bill I sponsored for an act to amend the Electric Power Sector Reform Act, to address the concerns of host communities and for related matters.
“When assented to by the President, host communities, particularly the communities around the Egbin Thermal Power Station in Ikorodu Federal Constituency, will get 5% of the actual annual operating expenditure for the preceding financial year from the various GENCOs operating within their community.
“These funds will be channeled to the development of those communities and ameliorating impact of the activities of these GENCOs. This is a milestone for us as the communities will be able to glean the full benefits of hosting the GENCOs.
“It will also guide GENCOs in providing targeted developmental projects that will impact on the lives of our people, their host communities.
“I thank my fellow legislators in the Senate and House of Representatives for their commitment to the passage of this bill and urge our listening President to kindly assent to this bill promptly.”
