Rethinking the royalty sharing provision

Provinces with no hydropower potential should get a piece of the revenue pie too.

The royalty sharing framework provided in Schedule 4 of the Intergovernmental Fiscal Arrangement Act 2017 shows how the fees charged on the generation of hydroelectricity is divided among the three levels of government. The framework indiscriminately allows the rule of 50/25/25 for sharing royalties collected by the Department of Electricity Development from all forms of electricity production—half goes into the federal consolidated fund, and the rest is divided equally between the provincial and local governments.