The Kogi State House of Assembly has passed into law the bill for a law to establish the State electricity market and regulatory Commission and other matters connected therewith 2024.
The passage of the bill was sequel to a report presented to the hallow chamber by the house joint committee on physical planning, regional, urban and rural/energy development and Judiciary, Justice and Legal matters
It was gathered that the Speaker of the house Rt. Hon. Aliyu Umar Yusuf w led other members of the Assembly to consider the bill clause by clause after going into committee of whole on Wednesday.
Earlier in his report, the Chairman,
joint committee on physical planning, regional, urban and rural/energy development and Judiciary, Justice and Legal matters Hon. Obaro Emmanuel recalled that the bill was was presented to the house for the first time during its plenary sitting on Thursday 23th May 2024.
” You may further recall that this honourable House, on Tuesday, 28″ May 2024, debated extensively on the general principles and merit of the Bill and thereafter, referred same to this Joint Committee with the mandate to harmonize the Kogi State Electricity Law, 2023 that was read, debated and referred on Thursday, 30° November 2023, being a bill with similar subject matter, for further legislative processing and necessary Course of action.
“Both Bills, one being a Private Member Bill and the other, Executive Bill, were studied. The two bills are proposing legislation for the establishment of the Kogi State Electricity Regulatory Commission with powers to discharge the regulatory functions and responsibilities to undertake power generation, transmission, distribution and marketing of electricity, one with emphasis on consumer protection and standards of performance.
“For reasons of enforcement after passage, and being a bill the State Government, out of a sense of duty, devoted time to bring forth before the House, the Joint Committee considered the bill substantially for consideration”.
The Chairman disclosed that the Committee was mandated to critically understudy the essential provisions of the bill harmonize the earlier version of the Bill, the Kogi State Electricity Law, 2023, with the current; and provide amendment to any of the clauses or words used therein towards making a better legislation.
Below is other information contained in the report as presented by the Chairman,
joint committee on physical planning, regional, urban and rural/energy development and Judiciary, Justice and Legal matters Hon. Obaro Emmanuel on the bill for a law to establish the State electricity market and regulatory Commission and other matters connected therewith 2024.
METHODOLOGY
The Joint Committee deliberated extensively on the subject matter and held a Public Hearing on 3™ June ,2024 to enable stakeholders air their views in participating towards law making. The Joint Committee used a Bill for a Law to establish the Kogi State Electricity Market and the Kogi State Electricity Regulatory Commission and other Matters Connected Therewith 2024 for the Public Hearing to aggregate public views. Observations and relevant information were obtained from the verbal presentation and copies of memoranda forwarded to the Committee.
Thereafter, the Committee considered the two bills clause by clause and at the end wish to present the following observations, amendments and recommendations for consideration and adoption by the honourable
AMENDMENTS AND RECOMMENDATIONS
RECOMMENDATIONS.
The Joint committee, having gone through and critically subjected the bills to legislative scrutiny, herewith, wishes to submit its report noting
the following observation and recommendations:
The Joint Committee adopts with marginal amendment the Part II of the Electricity Bill, 2023 to ensure provisions of objectives, Scope and application (on the Content page but no provision was made afterwards) of the bill when passed into law. The Electricity Bill, 2024 has no such provisions. The Part II as amended is as follows:
PART II
OBJECTIVES AND APPLICABILITY
The objectives of the Law are to: –
(a) Provide a legal ard institutional framework for Kogi State participation in the power Sector and for drawing public-private
partnerships to improve the policies offered by the Nigeria energy supply industry.
(b) Provide for the development and management of Sustainable, efficient and effective power supply through generation transmission and distribution of electricity witin the State;
(c) Facilitate the development and management of electricity infrastructure and facilities to sustain power supply;
(d) Ensure the availability of a cost-effectve electric power Supply;
(e) Collaborate with Federal electric power related Agencies to
promote and support investment in electric power projects within the State;
(f) Ensure that the State has constant electric power supply
(g) Develop and facilitate an enabling environment for embedded power sector investment in the Strate; ensure that the State has constant electric power supply;
(h) Ensure the protection of electric power generation, evacuation infrastructure and prescribe appropriate sanctions;
(i) Promote policies and regulatory measures to increase within the geographic coverage of the State, power generation, transmission, distribution and supply of electricity in collaboration with Federal Agencies or Agencies from other States responsible for electricity sector policies;
(j) Provide a framework to stimulate the development and utilization of renewable energy Sources and create an enabling environment to attract investment in renewable energy sources in Order to increase the contribution of renewable energy to the energy sector;
(k) Provide a framework for improvement of access to electricity in rural and urban areas through the use of conventional sources and renewable energy off-grid and mini-grid solution;
(L) Promote indigenous capacity in technology for renewable energy sources through a framework for local content in the State electricity supply industry;
(m) Promote public education on renewable energy rae production and consumption to increase the generation, transmission, distribution and consumption of electricity from renewable sources;
(n) Promote framework for the security of electricity infrastructure, ensure effective prosecution of electricity infrastructure theft and punitive measures against electricity theft and other offences peculiar to power sector;
(0) Advice the State Government on measures to strengthen the policies of the State on energy sector in terms of generation, transmission and distribution of electricity; and
(P) Strengthen the relationship between the State electricity market and Federal electricity market.
The Scope and application of this Law:
(1) Subject to the provisions of Electricity Act 2023 hereinafter referred to as the “Act” and pursuant to the provisions of Sections 4Ptices 2 (2) (a) – (e) of this Law shall apply throughout the geographical boundaries of Kogi State with respect to all aspects and segments of the power sector value chain in the State.
(2) The State Electricity Commission established under Section 3 of this Law shall ensure collaboration for rural electrification between States and Local Governments and Federal Government Or between the State and Local Governments and distribution licenses to ensure electricity access to rural, unserved and underserved areas, promote investment in electricity or provisions Of electricity within the State or Local Government Areas.
The Joint Committee further observed that the Electricity Bill 2024 lacks provisions for consumer protection which were provided for under Part XIV of the Electricity Bill, 2023. The provisions recommended to form part of the 2024 bill. The provisions are to wit:
3. The Kogi State House of Assembly be defined in the interpretation section as ” the legislative arm of the government of kogi state that makes laws for peace,order,and good governance of the state in respect of matters not in the exclusive legislative, but concurrent list and other matters with which it is empowered by the constitution to do so”.
4. Section 49,50,51 ,52 highlights on the rules of kogi state electricity market ,metering and billing collection ,disconnection of supply for customer defaulting in payment of bills, and transfer of Outstanding debt of electricity customer in kogi to other states of Nigeria, there is need to invigorate on the consumer’s protection when wrongly bill on estimation without no meter to quantify his/her consumption of electricity supply and/or billed when there was no supply . there is need to invigorate on the consumer’s legal rights and protection for peaceful business relationship.
5. TO avoid conflict of interest and encourage transparent commercial relationship between service providers and consumers the best practice for both rural dwellers and urban areas is to insert in the Kogi state law on electricity market and kogi state electricity Regulatory commission in line with the electricity Act 2023 to adopt the clause that makes it mandatorily or compulsorily for the electricity Distribution Licensees to install meters on every consumer’s house for accountability and transparency for distribution of Electricity both Urban Areas and Rural communities . The Rural dwellers may need the intervention of the government in form of subsidy or palliative as a strategy to be able to completely comply because of their poor financial status,
CONSUMER’S LEGAL RIGHT AND PROTECTION AND LICENSEE PERFORMANCE STANDARDS
(1) The Commission shall develop, in consultation with the licensees, the following: (a) customer service standards;
(b) quality of service and supply standards;
(c) customer complaint handling standards and procedures;
(d) procedures for dealing with, and assisting where necessary, customers who have difficulty in paying bills;
(e) procedures for applying for electricity service;
(f) procedures for disconnecting non-paying customers or for
those in breach of other terms and conditions of an applicable tariff or contract;
(g) the information to be provided to consumers and the manner of its dissemination; and
(h) internal procedures for responding to emergency situations.
(2) Standards and procedures developed by the Commission shall be adhered to by the applicable licensees and all persons to which they apply to and shall be published by the applicable licensees in such manner and by such means as the Commission may direct.
(3) Without prejudice to the obligations of licensees regarding compliance with service delivery standards under this section,
licensees shall publish on a quarterly basis through their official websites or other online mediums, key performance indicators as it affects service delivery including:
(a) technical data related to load, system and equipment;
(b) operational parameters;
(c) financial data; and
(d) customer service information and other indicators.
Performance Standards and Codes:
(1) The Commission shall develop in Consultation with licensees
and other interested parties, the following performance standards and codes:
(a) standards of overall performance in connection with the provision of electricity Supply services and in connection with the promotion of the efficient use of electricity by consumers;
(b) such technical codes and manuals as may be required for the Safe, reliable, and efficient operation of the system; and
(c) such other standards, codes, manuals as the Commission may require.
(2) Standards, codes and manuals approved by the Commission under subsection (1) shall be binding on the applicable licensees
and shall be published by the applicable licensees in such manner as the Commission may direct.
(3) Different standards may be determined for different licensees under this section.
(4) The Commission shall carryout annual review of the overall performance of licensees, and in case of established failure on the part of licensee to meet overall performance Standards, the Commission shall determine appropriate reliefs including fines and penalties that the Commission may impose in such circumstances in accordance with the provisions of this subsection and the licensee’s performance standards and codes.
6. Under Clause 6(1) of the Bill, the tenure of office for both the
Chairman and other Commissioners should be made uniform. The Committee proposes 5 years for both.
Section 7 be re-drafted to read:
“The salaries ,allowances ,remunerations ,and other condition of service payable to the Chairman, Commissioners and staff of the Commission shall be as determined and prescribed by the State Government”. This is to avoid a Situation where the remuneration Of a member is decided by another member.
8. Section 8(1a) of the Bill be amended to read: “he is appointed into the public office or elected as a member of the State House of Assembly except on the ground that he resigns from his position or elected position”.
9. Section 9(1b) be re-drafted to read” is convicted of a criminal offence by a competent court in Nigeria or any other country, office shall be vacated on the date of conviction”.
10. Section 12(6) amend “shall be not be” to read: “shall not be.”
11. Section 54 be amended to include a fair representation of The Town Planners and the Nigerian Society of Engineers, in the constitution of the Kogi State’ Electricity Regulatory Commission.Insert, therefore, paragraphs after (j) and (k) to read:”a representative of the Town Planners and Nigerian Society of Engineers respectively.
The roles of these organisations are crucial in ensuring that electricity engineering infrastructural development aligns with standards, urban and regional planning strategy. The integration of their professional expertise will prevent haphazard electrification and promote socio-economic
growth and development, safeguard the environment and improve the quality of life for our citizens of kogi state.
12. The part viii, Clauses 122,123 that proposed provisions for Savings, transitional, Repealing and Re-enactment be removed for
now because there is no Law in force on the subject matter. The Electricity Law, 2024, when passed shall represent the first law of the
State on Electricity
13. Under section 3(3)(10 ), 57(a)(b)(d)(e)(h), 65(c)(d)(j)(n). The functions of the following statutory bodies should be streamlined and clearly defined to avoid clash of interest:
(a) Kogi state Electricity Regulatory Commission under section 3(10) viz-a-viz its power of independence under section 3(3).
(b) Ministry Or Commissioner in charge of energy under section
65 of the Bill, especially with the secretariat function under section 65(c)(d)(j)(n).
(c) The power or functions of the Kogi State Council of Electricity under section $7(a)(b)(d)(e) (h).
(d) Part iii ,v ,vi and vii ie the provisions that focuses on rural electrification and renewable energy be invigorated to comply with the agitation of the Green House electricity system to encourage any process that will lead to lessening carbon emission and that will be in line with the principles of climate change
(climate change Act).
14. Part ii Section 5(2) be re-drafted or amended to read:” a person who shall be qualified for the appointment of the chairman of the Commission or commissioners ,Secretary, be considered with the addition of the following key indices listed below among other criteria section 5(2b,2c,2d) under Section 4 of this Law to read:
(a) Be a Nigerian of at least 35 years of age nominated from public Or private sector with good moral character with educational
Qualifications and professional or private experience in any of the relevant fields.
(b) The key indices to consider for recruitment of right candidate to key offices such as chairman, commissioner, secretary ,e.t.c are level of Training, exposure and experience since this offices constitute the engine room of the entire commission.
(c) Other criteria to put into consideration is ability to administer Professionalism, spirit of stewardship for Team work and consistency in making positive and progressive decision for a solid regulatory regime that will attract the right kind of investors that the sector will need.
(d)The regulator will need to be firm and independent from day 1 in Order to establish discipline within and amongst market participants.
14 .There is Need to engage a firm and independent , well disciplined regulator from day 1 to carry out robust Studies that will establish firmly the electricity demand
profile of the state and that will serve as prelude to the i issuance of licenses for new market entrants.
15.To avoid major flaws in the implementation of , } Privatization programme , it will be recommended that the the Distribution service providers be required to enter into direct Bi-lateral contracts with the electricity generating companies with a view to keep to terms of the agreement and any failure on the part of either the electricity generating company or distribution service provider will attract full payment of outstanding liabilities and a liquidated damage ,a punitive measure applied to ensure integrity and commitment.
The best way out of this problem is to apply the “Cost Reflective” tariff as the unique solution needed to ensure compliance with the contracts.
CONCLUSION;
The following sections and sub-section were without amendment viz; section 1,2,3(2a-2d)(4), 4(1,2(a-e)(4,5) 5(1,2a,3-8),,7(2a-2d),8(1b19,2a-2d,3,4),9(1a,1c-1e,2),10(1a-d,2-5),11(1a-1k(i-iv)2a-2p,3a3q),12,13,14,15,16(1-3a-3c,4),17(1-2),18(1,,2a-2d),19(1-3(a-f,47),20(1,2a-2c,3),21(a-e),22,23,24(1-3),25(1-3),26,27(1a-1f,2a-2b),28(12),29(1,2a-2f,3-7),30(1-2),31(1-2),32(1a-1e,2,3),3391,2,3,4a4d,5,6,7),34(1a-1d,2,3),35(1-3),36(1,2a-2b),37(1,2a-2c),38,39(1a le, ),40,41,42,43,44,45,46,48,49,50,51,52,53,54,55,56,57(eh),58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79, 80,81,82,83,84,85,86,7,88,89,90,91,92,93,94,95 96,97,98,99,100,101,3 02,103,104,105, 106,107,108, 109,110,111,112,113,114,115,116,117,118 ,119,120,121,
Finally, on behalf of the Members of the Joint Committee hereby present
this report to this August Assembly for legislative scrutiny and solicit for the cooperation of this August House to consider and adopt the
amendments and recommendations of the committee and grant accelerated passage of the Bill into Law.
In conclusion the Rt. Hon. Speaker, Distinguished colleagues, the Joint Committee wish to appreciate the House for gving them this Opportunity to serve in this capacity. We sincerely thank all the Hon. Members particularly the Hon. Members of the Joint Committee for a display of their virtue, devotion to the assignment, patience, and commend the efforts of stakeholders and general public for the response to invitation and contribution during the public hearing to ensure the success of this assignment.
The clerks of the Joint Committee wish to appreciate the August Assembly for the opportunity to display our professional ethics in handling the assignment.
Thank you.
1. Hon . Obaro Emmanuel Chairman ,House Committee on Phy Planning ,urban and Rural/energy Devt.
2.Hon.Usman Halidu Adejoh—Chairman, House Committee on judiciary , Justice, and Legal Matters .
3.Hon. Daku Sunday Vice-chairman, House Committee on Physical Planning ,urban and Rural/energy Devt.
4. RT.Hon. Aliyu Umar Yusuf Vice Chairman ,House Committee on Judiciary , Justice, and Legal Matters .
5.Hon.Bin-Ebaiya Shehu Tijani -Member.
6. Hon. Yahaya Umar-Member.
7. Hon.Ishaya Omotayo-Member
8.Hon.AbdulRazak Suleiman- Member.
9.Hon.Abuh Onoru-Oiza Jibrin -Member.
10.Rt.Hon.ComfortOjomaNwuchiola-Member.
11.Hon.IbrahimUsman-Member..
12.Comr.Alfa Ndagi M.Clerk ,House Committee on Judiciary , Justice and Legal Matters .
13.Past. Atebije Sunday Mamodu Clerk