The Senate has proposed 10 per cent of total revenue for host communities of Hydroelectric Power Producing Areas Development Commission (HYPPADEC)
In his lead debate titled: “A Bill for an Act to amend the Hydroelectric Power Producing Areas Development Commission, (Establishment Act), 2010,” David Umaru (APC, Niger East) said the proposed amendments would give legal backing to the 10 per cent HYPPADEC charge being deducted from the invoices of companies.
It includes power generating and distributing firms, and retained by various government agencies, including the Market Operator (MO), the Nigerian Bulk Electricity Trading Plc. (NBET).
Umaru said the proposed amendments would reduce from 30 per cent to 10 per cent, the charge imposed on the total revenue generated from the operations of any company or authority operating hydroelectric dams in any member state of the commission.
He noted that host communities have been ravaged by flood, and others afflicted by water-borne diseases, environmental pollution and loss of lives and property. He stressed that the plight of communities in the HYPPADEC member states remained an issue of great concern to many of the stakeholders.
According to him, the 30 per cent charge became the bone of contention among investors, market participants and the Nigerian Electricity Regulatory Commission (NERC) leading to a demand for downward review.
Deputy Senate President, Ike Ekweremadu who presided during the plenary referred the issue to the Committee on Finance which is to report back within four weeks.
