160
M. U. Ukponu et al.
as electricity. This chapter will focus on conflicts existing among EPSRA
and CPGR as an example to buttress this point.
EPSRA defines captive power generation as the generation of electricity for the purpose of consumption by the generator and not sold
to an off-taker,
93 but 16 of the CPGR defines captive power generation as the generation of electricity exceeding 1 MW for the purpose of
consumption by the generator and not sold to an off-taker. Section 62 (1)
of the EPSRA provides that licenses shall be obtained by energy utilities
electricity generation, transmission, distribution and trading. It is worthy
to note that captive power generation is excluded from electricity generation requiring licensing.
94 An ‘inter-conflict’ of laws arises where EPSRA
expressly excludes captive power generation from licensing, yet CPGR
prohibits captive power generation operations without a permit.
95 The
regulation further provides that a permit holder of a captive power generation facility must obtain the written consent of NERC before supplying
surplus power not exceeding 1 MW to an off-taker and would require a
license to supply surplus power exceeding 1 MW to an off-taker.
96
It is pertinent to place in proper perspective that captive power is
virtually an off-grid electricity system, which naturally falls within the
purview of the States to explore for rural electrification.
97 However,
captive power as off-grid electricity could be utilized by the electricity
utilities in urban areas under the purview of the Federal Government
for the purpose of supporting or balancing the grid. In essence, off-grid
electricity systems where operated in urban areas are properly within the
powers of the Federal Government to regulate. Therefore, the CPGR
would be unconstitutional to the extent that it regulates for captive
power generation in rural communities. For captive power generation in
rural areas, the use of the words ‘permit’, ‘written consent’ or ‘license’
93 EPSRA, s 100.
94 EPSRA, s 62 (1)(a).
95 CPGR, s 1.
96 CPGR, s 8 (a) and (b).
97 Yemi Oke, Conflicting Laws Keep Nigeria’s Electricity Supply Unreliable (The Conversation,
24 August 2017), https://theconversation.com/conflicting-laws-keep-nigerias-electricity-supplyunreliable-81393.
M. U. Ukponu et al.
as electricity. This chapter will focus on conflicts existing among EPSRA
and CPGR as an example to buttress this point.
EPSRA defines captive power generation as the generation of electricity for the purpose of consumption by the generator and not sold
to an off-taker,
93 but 16 of the CPGR defines captive power generation as the generation of electricity exceeding 1 MW for the purpose of
consumption by the generator and not sold to an off-taker. Section 62 (1)
of the EPSRA provides that licenses shall be obtained by energy utilities
electricity generation, transmission, distribution and trading. It is worthy
to note that captive power generation is excluded from electricity generation requiring licensing.
94 An ‘inter-conflict’ of laws arises where EPSRA
expressly excludes captive power generation from licensing, yet CPGR
prohibits captive power generation operations without a permit.
95 The
regulation further provides that a permit holder of a captive power generation facility must obtain the written consent of NERC before supplying
surplus power not exceeding 1 MW to an off-taker and would require a
license to supply surplus power exceeding 1 MW to an off-taker.
96
It is pertinent to place in proper perspective that captive power is
virtually an off-grid electricity system, which naturally falls within the
purview of the States to explore for rural electrification.
97 However,
captive power as off-grid electricity could be utilized by the electricity
utilities in urban areas under the purview of the Federal Government
for the purpose of supporting or balancing the grid. In essence, off-grid
electricity systems where operated in urban areas are properly within the
powers of the Federal Government to regulate. Therefore, the CPGR
would be unconstitutional to the extent that it regulates for captive
power generation in rural communities. For captive power generation in
rural areas, the use of the words ‘permit’, ‘written consent’ or ‘license’
93 EPSRA, s 100.
94 EPSRA, s 62 (1)(a).
95 CPGR, s 1.
96 CPGR, s 8 (a) and (b).
97 Yemi Oke, Conflicting Laws Keep Nigeria’s Electricity Supply Unreliable (The Conversation,
24 August 2017), https://theconversation.com/conflicting-laws-keep-nigerias-electricity-supplyunreliable-81393.