New Electricity Act Will Take Care Of Challenges In Power Industry- Engineer Ewesor

Engineer Peter Ewesor is the pioneer Managing Director/CEO of Nigerian Electricity Management Services Agency, and the Chief Electrical Inspector of the Federation (2013-2021). THE WHISTLER got him to speak on the new Electricity Act. The new electricity law repeals the Electric Power Sector Reform Act – 2005 which was signed into law by President Olusegun Obasanjo in 2005.

Excerpt:

What Is Your View Of The Electricity Bill That President Tinubu Recently Signed Into Law?

Thank you very much. My view is that with this bill being signed into law, President Bola Ahmed Tinubu has clinically seen the lacuna between the Electric Power Sector Reform Act of 2005 and the Constitution. The lacuna is that the act still maintains the exclusivity of the electric power supply, of generation, transmission, and distribution as that of the federal government which is contrary to the stipulations and the position of the Nigerian Constitution.

The Constitution has liberalized it, such that every state, even individuals who have resources, can actually do electricity business in Nigeria. But the act still retains or ascribes the exclusivity of power generation, transmission, and distribution of power supply in Nigeria to the federal government.

So, what the new electricity act recently signed into Law has done is remove that lacuna. We are looking for power, sustainable power, and also looking for reliable power and affordable Power Supply. So, the best thing to do is to align the electricity act with the Constitution, which is what the new act has done. With this, we can then be operating in the best practice space, like other developed power economy climes in the world.

Do You Foresee Any Challenges That The Government Or Nigeria Will Face With The Signing Of This Bill? And Do You Think The President Is Aware Of This?

Well, I think it is very clear to me that if the president is not aware of the challenges, he will not have signed this bill into law, because this bill actually first and foremost removes the challenges that we are facing now when the constitution is saying one thing and then the act is saying another thing. Even though the bill has been in development for over two years and it was ready, it was not signed into law.

I think that what has happened now is that with both of them (the Act and Constitution) in alignment, the electricity act is going to actually complement the national constitution, and it is very clear that as we journey in the new electricity industry space, we will always have solutions to whatever issues and challenges that may come up. I’m very sure that Mr. President definitely is fully aware of this, having in the past ventured into the electric power business while he was a governor of Lagos state. And I don’t think at this stage there could be challenges that we cannot surmount with a proper implementation strategy put in place immediately.

There Are Some Stakeholders Who Have Argued That The Nigerian System Is Such That Players And Stakeholders Will Like To Take Advantage Of The New Order. Have You Seen Any Indication Or Do You Think This Act Can Take Care Of That?

I think Mr. President actually has that advantage from what we have seen happen in the past and what is currently happening. Yes, people may want to take advantage. But it is left for the system being headed by the President to say, no, this cannot happen nor be allowed in order to have power supply prosperity in Nigeria.

But what are the advantages? The players now who are probably benefiting from the old system, may want the status quo to remain. I am sure and very clear, that there are going to be what we call clear delineation and demarcations of the roles and responsibilities of all stakeholders in the new order, which I think that this administration should then make sure that there are proper strategic implementation plans put in place timely in the power industry space such that everybody knows its rules and responsibilities.

What are the boundaries? For example, let us talk about India with a similar structure with the new regulatory structure which the new Electricity Act has thrown up for Nigeria, where you have the Federal Regulator, the Regional Regulators, and the State Regulators along with the Technical Enforcement Agency as the co-regulator of the India power industry

In India, there is no conflict of any sort. All players are working complementarily with each other, such that the power system grows appropriately and adequately too. And if you look at the rate at which Indian power space, and/or power industry has grown, therefore, you can’t really see any person or group/ corporate bodies who can take advantage that can actually derail the intention and the desired objective and result of putting the new Electricity Act – 2023 in place.

In India, apart from the Federal, Region, and State regulators, there is the Chief Electrical Inspectorate Services, a replica of the Nigerian Electricity Management Services Agency that is responsible for the enforcement of technical standards and regulations, inspection, testing, and certification of all categories of electrical installations and also responsible for the safety of lives and property in the Nigeria power industry and countrywide.

Currently, We Don’t Have State Or Local Regulators. It’s Only The Federal Government That Regulates Electricity Supply In Nigeria. So, How Do You Think This Is Going To Play Out? Who Is Going To Perform The Role That You Have Just Suggested In Relation To The India Model?

You see as I said, the electricity act actually foresees all these roles and responsibilities which are now to be co–performed by the Federal and State regulators along with the technical enforcement agency – NEMSA. With the coming into force of this act, the states on their own too can now have their own Electricity Act, Regulations and develop their electricity market.

For the states to perform efficiently and effectively in the power business, they need to first and foremost develop adequate capacity and capability in technicalities and workings of the electric power industry before venturing into the industry otherwise your guess on the expected result or outcome of such venture is as good as mine.

In achieving the desired result and objective of the Federal Government in all this, I am sure that the president has a solid team, of technocrats in the relevant fields – technical field, the power economic field, and the legal field because the electricity industry actually embraces so many things and activities that are involved in the production, transmission, and delivery of electricity supply to consumers or citizen of any nation.

This is what many people don’t know nor understand about the power business when they say it is not rocket science, and think that it is a straight-jacket business like telecommunication. Yes, it is not rocket science but the power business is not the same as the telecommunication scenario.

The Nigerian Electoral Regulatory Commission will still be the federal regulator while the states will be the state regulators. I’ve glanced through the act, and it’s very clear, and from the statement of Mr. President, there are interstate players. State regulators will be localized within that particular state, while the Federal Regulator and regulation actually cover all the interstate rules and regulations, more importantly, there should be continuous synergy between the federal regulator and the state regulators, and the technical enforcement agency for us to maximize the benefit of this new electricity bill signed into law by Mr. President.

How Soon Do You Think Nigerians Will Begin To See The Benefits Of This Electricity Act In Terms Of Reliable And Stable Electricity Supply?

Well, this is where I actually would like to advise and warn Nigerians to be patient. Now that the change has come, Nigerians should not just be expecting improvement today as it is a journey and a race. There is a process beginning a journey and the journey will have different layers, different steps, and stages towards getting to its destination to give Nigerian, Safe, Reliable, and Stable electricity.

The gains that will come maybe soon or later and this will depend largely on the readiness of the respective state governments to quickly develop their electricity industry and electricity market, unlike what happened in the past when the industry was not liberalized.

Also, I like to say that the gain is going to be rapid, but it’s not going to be immediate or now on the table. Basically, we’re going to have the enthronement of reliable, safe, sustainable power supply in the country, and this will definitely bring about proper management and reliable tariff, because the more generation capacity you have on the grid, whether it’s a national grid or local grid, the better the tariff will become.

Why Do You Think The Signing Of The Electricity Bill Was Delayed Until This Time?

Well, I am not in the mind of the previous administration, so I cannot say why it was delayed. But probably, there were areas requiring reconciliation between the National Assembly, those who enact the laws, and the executive has to look at the laws for fitness to see if it’s really what we want or fit for improving the electricity power supply and the industry. In other words, the legislators and the federal government – the executive were probably sorting out the grey areas to ensure that a balance, workable and proper electricity supply industry Act emerges to enthrone an enduring power industry in Nigeria.

So, What kind Of Minister Of Power Are You Looking At As An Electrical Engineer Who Has Been in Public Service For Over 30 Years? If You Were To Advise The President On Who Should Be The Minister Of Power, What kind Of A Person Would You Recommend In Terms Of Experience And Qualifications?

For me, first and foremost, we’ve been talking about integrity, sincerity, and competence. I will latch on these qualities to advise the president on the type and character of the person for the post of Minister of Power in this dispensation. But let me put it this way, I will, first of all, say that the particular person that fits the position of a minister of power should be somebody who has in-depth knowledge, expertise, and experience on the subject matter. In addition, the person must be a technocrat with good leadership and without diversionary ambition other than being a minister of power.

So, the person must be somebody who actually has those technicalities and ideas, and who can actually play the role of proper coordination. That person must be somebody who wants to sleep power, dream power, and wake up with power in his/her conscious mind. And not having somebody who’s just a politician, who will have divided attention and interests.

Must The Person Be An Engineer?

Yes, to a large extent, an engineer having relevant experience and competence with good technical/engineering knowledge, power economic knowledge, legal knowledge, and more importantly the engineer who knows the seriousness and technicalities and workings of the industry would be a better minister of power. But an engineer who doesn’t possess these qualities cannot perform in the position of minister of power and make Nigeria have prosperity of power supply.

If The Wrong Minister Is Appointed To The Power Ministry, Can It Affect The Smooth Operation That Is Envisaged By The New Electricity Act?

You can answer that yourself. Things can only work in any human endeavor only if the right person is sitting in the driver’s seat. If the wrong man sits in the driver’s seat, of course, from the beginning you are already going down and doomed. This is the problem that happened not just only in the power industry, but in most other areas of human endeavors. For example, we are talking about power, I know we have well over 13,000 mega-watts installed capacity as it stands today. But we can’t boast of generating constantly 7,000 mega-watts 24/7 for six (6) months from that 13,000 Mega-Watts. Why? Simply because of some bottlenecks most often, man-made errors. So, the power is idle.

So, when you put the wrong person as a minister of power, in the first instance, then the industry growth is taunted and will remain stagnant or even in retrogress.