• KPMG audit uncovers abuse of tariff framework
• Ministry dithers over report
• Govt owes market participants N200b
A FRESH electricity subsidy crisis over the administration of the Multi Year Tariff Order (MYTO) funds may soon hit the country, according to an investigation by The Guardian.
This is coming as KPMG Professional Services, a Nigerian partnership and a member firm of KPMG international cooperative, in a 101-page audit of the sector indicted government for alleged non-adherence to the electricity tariff framework.
According to sources, the audit report has been sent to the Ministry of Power for necessary actions. But the ministry, it was learnt, has not considered the recommendations.
One of the primary functions of the Nigerian Electricity Regulatory Commission (NERC) as contained in Section 32 (d) of the Electric Power Sector Reform (EPSR) Act, 2005 is to ensure that the prices charged by licencees are fair to consumers and sufficient to allow the licencees to finance their activities and to allow for reasonable earnings for efficient operation. Section 76 of the EPSR Act further empowers the commission to set up one or more tariff methodologies for regulating electricity prices
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