Commission to administer fund —- CEO New Hampshire Capital

By Udeme Akpan, Energy Editor

THERE were strong indications, weekend, that the Hydro-Electric Power Producing Areas Development Commission, HYPPADEC, could generate an average of N1.8 billion monthly for the development of host communities, based on data obtained from Nigerian Bulk Electricity Trading (NBET) Plc.

Under Nigeria’s Electricity Act, the HYPPADEC is empowered to collect 5 per cent of the total revenues of Electricity Generation Companies, GenCos, for the purpose of developing the areas that are mostly in the northern part of the nation.

Data collated from the most current NBET report by Energy Vanguard showed that the GenCos generated an average of N35.4 billion monthly in the first half (January – June) of 2022.

The breakdown indicated that N38.9bn, N40bn, N31.3bn, N38.8bn, N30bn and N33.5bn were generated in January, February March, April, May and June 2022 respectively.

Commenting on the Act, yesterday, the Chief Executive Officer, New Hampshire Capital Limited and Lead Consultant on Power to the Nigeria Governors Forum, Odion Omonfoman, said: “The Act sets aside of 5 per cent of all revenue accruing from power generated by the various Power Generating Companies in Nigeria (GENCOs) for the development of the respective host communities which will be administered by Hydro-Electric Power Producing Areas Development Commission (HYPPADEC).”

He said: “The Act 2023 has a number of new provisions worth studying by market participants in the NESI, Investors across the electricity value chain, Federal Ministry of Power, State Governments and even for the NERC.

“The Electricity Act repeals the Electric Power Sector Reform Act signed by former president Olusegun Obasanjo in 2005. The EA 2023 consolidates the various electricity laws in the power sector. Some of these laws are the Hydroelectric Power Producing Areas Development Commission Act, the Nigerian Electricity Management Services Agency Act, 2015 and others.

“Any State electricity law shall not be invalidated by the provisions of the EA. In other words, the provisions of the EA may not be applicable to state electricity licensees where that State House of Assembly has created a valid electricity law excluding State licensees from the provisions of the EA 2023.

“The Federal Ministry of Power is now tasked with developing an integrated National Electricity Policy and Strategic Implementation Plan to guide the overall development of the electric power sector in Nigeria.”