Nigerian power sector reforms and privatisation by bolanle. Electric power sector reform act an act to provide for the formation of companies to take over the functions, assets, liabilities and staff oftionalthe na electric power authority, to develop competitive electricity markets, to establish. Read online electric power sector reform act plac book pdf free download link book now. An overview of power sector laws, policies and reforms in. The creation and unbundling of the power holding company of nigeria phcn have been vital first steps. The power sector in nigeria has already achieved many successes. The proposed law titled electric power sector reform actamendment bill 2018 and sponsored by the legislator is a bill for an act to amend the electric power sector reforms act to. Pdf nigerias electric power sector requires substantial reform if the. But just as it was the case in many other third world economic 1 the market has remained the same in operation while on paper the old utility has been unbundled into 18 successive companies. Fgp 15310200511,000 ol 67 annual subscription from 1st january, 2005 is local.
Nigerian electricity regulatory commission nerc is an independent regulatory body with authority for the regulation of the electric power industry in nigeria. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. This instrumental act revolutionized the sector, bringing into existence the current independence and private status of the generation and distribution chains in the nigerian power sector. Nigeria enacted the electric power sector reform act epsra in 2005 to improve electricity access in the country, but in spite of epsra, electricity access in nigeria has remained one of the lowest in africa and in the world. The electric power sector reform act of 2005 epsr codified the preceding objectives, creating a new legal and regulatory framework for the sector, including the elimination of nepa and. Hence policy changes to reform the indian electricity supply industry have been developed with the support of multilateral agencies such as world bank. In 2005, as a result of the power sector reform process, nepa was unbundled and renamed power holding company of nigeria phcn. The electric power sector reform act epsr 2005 was established to provide the general legal framework for the formation of several legal entities corporation to take over the assets and liabilities of the old regulatory body and to establish the nerc nigerian electricity regulatory commission as the new agency for generation, transmission. The nepp is the national policy document for the power sector, the epsr provides the legal framework, and the roadmap is more of an implementation document for reforms in nigerias power sector.
This roadmap heralds our advance to the final and very important stage in the reform process. Enacted by the national assembly of the federal republic of nigeria part i formation of initial and successor companies and the. The nigeria electric power sector opportunities and. Outline introduction fgn power reform agenda design of the nigerian electricity market milestones achieved in the implementation of the electric sector power reform act 2005 privatization strategy. Regulatory commission makes the following regulation on local content. Know your rights in new electric power sector reform bill 2018. Electric power sector reform act, 2005 nigeria electricity. A key step in this plan was the setup of the power holding company of nigeria. The nigerian power sector reform is necessitated by the chronic poor performance of the sector and has as its compass the 2005 electric power sector reform act and the roadmap for power sector reform 2010. Epsra thats the electric power sector reform act of. Stamp duty shall not be chargeable under the stamp duties act in respect of.
In the last decade a lot has happened, from the formulation and issuance of the national electric power policy to the enactment of the electri nepp c power sector reform act no. Electric power sector reform epsr act 2005 archives. Electric power sector reform act 2005 rural electrification agency. The privatization of the discos and gencos was completed in 20. Electric power sector reform act 2005 rural electrification.
Privatisation in the power sector navigating the transition. The epsra proposed the incorporation of an initial holding company called power holding company of nigeria phcn to assume assets and liabilities of nepa. Sep 17, 2017 download version download 2218 file size 1. Update privatization issues federal ministry of power. To combat the inefficiencies and incompetences in this sector, the nigerian government has attempted to have in place, the stage for the privatisation of the electric power sector by enacting the electric power sector reform act, 2005 the electric power. Our main aim is to develop an educated customer base.
The electricity power sector reform act 2005, was passed setting up the commission with responsibilities to license companies to generate, transmit and distribute electricity in nigeria. Application means an application for a licence, or for an amendment, renewal, or extension of the tenure of a licence under the act. Electric power sector reform act, 2005 this instrumental act revolutionized the sector, bringing into existence the current independence and private status of the generation and distribution chains in the nigerian power sector. Nigeria the economic and power sector reform program. All books are in clear copy here, and all files are secure so dont worry about it. The national electricity power policy nepp and the electric power sector reform act 2005 epsr provide for the development of nigeria electricity market. Plot 1181 aguiyi ironsi street maitama district abuja, nigeria.
The electric power sector reform epsr act 2005 was drafted to provide a legislative framework for the reform of the nigerian power sector in accordance with the policies set out in the national electric power policy. The act removes operational and regulatory responsibilities of the electricity industry. The challenges of the nigerian electric power sector. To ensure fair and nondiscriminatory treatment of public and private sector entities. Federal republic of nigeria federal ministry of power. Following the passage of the electric power sector reform act 2005, the sector was unbundled into six generation companies gencos, eleven distribution companies discos and the transmission company of nigeria tcn. This act may be cited as the electric power sector reform act, 2005. Power sector reforms in nigeria likely effects on power reliab. Nigeria bulk electricity trading plc is a wholly federal government of nigeria owned company incorporated on july 29 2010 as part of the roadmap for power sector reform towards the full implementation of the electric power sector reform act epsra. Printed and published by the federal government press, lagos, nigeria. Act means the electric power sector reform act, 2005.
Electricity generation and the present challenges in the. The national electric power policy nepp of 2001 resulted in the electric power sector reform epsra act of 2005 establishing the nigerian electricity regulatory commission nerc. The proposed economic and power sector reform program epserp is the banks response to a formal request of the fngn in may 2009 for a quick disbursing fiscal stimulus adf loan to support its efforts aimed at mitigating the adverse impact of. The act outlined the framework of the reform as follows. Unbundle the state owned power entity into generation, transmission and distribution. Nigerias electric power sector requires substantial reform if the countrys economic development and poverty alleviation programme is to be realized. This study seeks to examine the power sector reforms, effects on electric power supply reliability and stability in nigeria. Electric power sector reform act of 2005 economic recovery and growth plan fgn federal government of nigeria fmobp federal ministry of budget and planning fmof or mof fmofi or mofi fmopwh federal ministry of finance federal ministry of finance incorporated federal ministry of power, works and housing fmopr forex fsp. As part of a wider global study of power secto r reform, the primary objective of the paper is to draw lessons from. Power sector reform act epsra in 2005 to improve electricity access in the country, but. Following a severe shortage of supply in the late 1980s and the asian financial crisis of 1997, which made the dollardenominated debt of the national power corporation extremely burdensome, the electric power industry reform act was passed in 2001. Deregulation of the nigerian power sector on performance.
The federal ministry of power is the policy making arm of the federal government with the responsibility for the provision of power in the country. Epsra thats the electric power sector reform act of 2005, and the nigerian electricity supply industry nesi are on the journey towards a perfect competition in the electricity industry market where there are few, if any, barriers to the entry of new players and prices are determined by the forces of demand and supply. The effect of control measures in the power sector reforms. National electric power policy in september 2001, which recommended. The nigerian power sector is controlled by stateowned power holding company of nigeria. Download the complete law project topic and material chapter 15 titled appraisal of the efficacy of the electricity power sector reform act epsra, an act in protection of consumers here on projects. Power generation, transmission, distribution and supply have become like the proverbial parable, water, water everywhere but non to drink. This act shall be known as the electric power industry reform act of 2001. An act to provide for the formation of companies to take over the functions, assets, liabilities and. The ministry in discharging this mandate is guided by the provisions of the national electric power policy nepp of 2001, the electric power sector reform epsr act of 2005, and the roadmap for. Approval of the electric power sector reform act and establishment of nerc. The implications of legal reform in the nigeria power sector. Bachelorarbeit, masterarbeit, hausarbeit oder dissertation. Nigeria electricity hub latest power sector information.
In addition, the government has taken steps to expand the existing generation capacities by the. The act provides for, among others, the unbundling of the public. The minister of power, had in 2017, declared four 4 categories of customers eligible to buy power directly from generation companies gencos and other licensees other than the discos. The epsra provided the statutory basis for the privatisation of the power sector. Nigerian power sector reforms and privatisation by bolanle onagoruwa director general, bureau of public enterprises june 14 2011. Rural electrification strategy and implementation plan resip viewdownload document. E12 lfn 2004, electric power sector reform act, no. The challenges of the nigerian electric power sector reform. Business rules means the nigerian electricity regulatory commission business rules of the commission regulations, 2006 and as amended. The electric power sector reform epsr act was signed into law in march 2005, enabling private companies. Milestones achieved passage of electric power sector reform in march 2005 the federal legislature passed the electric power sector reform act. Federal republic of nigeria federal ministry of power, nigeria.
In november 2005, the monolithic power holding company of nigeria phcn was divided into eighteen 18 successor companies 6 successor generation, 1. Overview overview of of nigerian power sector nigerian power sector contd. Your browser will redirect to your requested content shortly. The philippines power sector underwent a substantial and largely complete reform process. Relp 12016 developmentofrenewableenergyinnigeria 21 thisisperhapsoneofthereasonswhymanycountries have restructured their electricity industry througorms. The nigerian electric power sector reforms introduction the background. This steady decline in the nigeria electric power sector has led to a near complete failure of the system at the onset of the present civilian regime in 1999. The reform program also led to the establishment of the nigerian electricity regulatory commission in 2005 which was made responsible for the regulation of tariffs.
Download electric power sector reform act plac book pdf free download link or read online here in pdf. Nerc regulations nigerian electricity regulatory commission. This act was to drive the reform processes as follows. The nigerian power sector legalregulatory framework.
The proposed economic and power sector reform program epserp is the banks response to a formal request of the fngn in may 2009 for a quick disbursing fiscal stimulus adf loan to support its efforts aimed at mitigating the adverse impact of the global financial and economic crisis. The reform programme commenced in 1999, when the electric power implementation committee epic was inaugurated, culminating in the drafting of the national electric power policy 2001. Electric power sector reform act 2005 and the development. We disseminate the latest electricity news, jobs, analysis and education programs in realtime. Political economy of nigerian power sector reform unuwider. National environmental standards and regulations enforcement agency. Jan 11, 2016 introduction electricity regulation is still at its infancy in nigeria. This is the stage where we ensure that the fundamental changes to the ownership, control and. Implementing reform has resulted in significant progress that includes unbundling and privatization of the longstanding governmentowned monopoly in the power sector. Electric power sector reform implementation committee epic inaugurated by the national council on privatisation ncp to recommend measures for sector reforms, promote the policy goals of liberalisation, competition and private sector led growth and superintend draft of new bill.
This directive was in exercise of the powers conferred on him by section 27 of the electric power sector reform act, 2005 epsr act. Prior to 2005, there was no independent regulation of the power sector, as the national electric power authority nepa was both the operator and regulator of the sector based on the nepa or electricity act, lfn 1990. There have been many challenges towards the full blown unbundling. The rule of thumb for an industrial nation is about 1mw for every thousand towards achieving the objectives set out in the electric power sector reform epsr act of 2005, the following organisations have been. Nigerias power sector is unbundled and largely privatelyowned. Power policy 2001 forms the basis of the provision of the electric power sector reform act epsr which was enacted in march 2005. The main aim of the act was to ensure the privatization of the power sector to ensure efficiency. Apr 23, 2020 your onestop shop for all electricity affairs focal to the activities of the nigeria electricity hub neh is the circulation of knowledge of the workings of the power and energy industries. Power sector policy documents rural electrification. Presently, the federal government has embarked on power sector reforms with the intention of improving the above unpalatable scenario and in turn reduce the scope of monopoly control of the nations power industry. The paper therefore looks at the overall power sector reforms.
Cost reflective tariffs under myto ii feedin tariff for renewables. Electric power sector reform in nigeria business essay. An energyconsuming sector that consists of electricity only and combined heat and power chp plants whose primary business is to sell electricity, or electricity and heat, to the publici. Challenges of deregulation of electric power sector in a.
768 1223 1530 508 23 882 1424 312 956 1129 742 84 806 1490 675 529 1043 1544 1495 1535 578 924 572 543 22 511 262 381 1407 1131