Bill seeks 5% profit of power coys for host communities | Dailytrust

Bill seeks 5% profit of power coys for host communities

The House of Representatives

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.