New electricity levy introduced
Electricity consumers have started paying for a new levy imposed by the Ministry of Mines and Energy in March to help fund electricity generation projects in the country.
The new National Energy Fund levy which was approved by energy regulator, the Electricity Control Board (ECB), was introduced as from 01 July 2013. The new levy is being charged on electricity consumption at 1.02 cents per kilowatt hour.
According to the Ministry of Mines and Energy, the purpose of the levy, introduced in addition to the ECB levy of N$1.50 per unit purchased, will help complement government budgetary allocations to fund electrification projects in the country. Funds from the levy will also be used to provide loans to electricity undertakings to finance capital projects.
It will also be used to subsidise electricity tariffs to avoid temporary price shocks as well as subsidise electricity charges of identified poor communities, among others.
The Ministry of Mines and Energy is the custodian of funds realised from the levy.