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Ministry of Mines and Energy to impose electricity levy

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(Globalpost/GlobalPost)

Namibian's electricity's consumers will dig deeper in their pockets after the Ministry of Mines and Energy has imposed 1.02 cents per kilowatt per hour (Kw/h) levy of electricity supplied by Nampower to consumers in the country.

The levy will become effective as from the 1 July 2013.

Minister of Mines and Energy Isak Katali announced on Tuesday in a media statement that the levy on electricity will complement electrification funding, equity co-funding of electricity undertakings, loans to electricity undertakings for financing capital projects and electricity price under-recoveries.

The levy will be also used to subsidise electricity tariffs to avoid temporary price shock, subsidise electricity pricing of identified poor communities and financing of Regional Electricity Distributors (REDs) through soft loans for electricity related projects, he indicated.

“The levy will also be used for studies on electricity supply industry related projects, improvement of quality of supply and services, renewable energy projects, among others,” he stated.

The units are measured for the purposes of this levy in Kwh at the point where those units exit Nampower transmission system.

The levy will be collected by electricity utilities from consuming electricity customers on behalf of the National Energy Fund.

(edited)WINDHOEK; Consumers will have to dig deeper into their pockets as the Ministry of Mines and Energy has imposed a 1.02 cents per kilowatt hour (kWh) levy on electricity supplied by NamPower.

The levy will become effective on 01 July this year.

Minister of Mines and Energy Isak Katali announced in a media statement issued on Tuesday that the levy on electricity can be applied on electrification funding, equity co-funding of electricity undertakings, loans to electricity undertakings for financing capital projects, and electricity price under-recoveries.

The levy will also be used to subsidise electricity tariffs to avoid temporary price shocks, to subsidise electricity pricing of identified poor communities and the financing of Regional Electricity Distributors (REDs) through soft loans for electricity related-projects amongst others things, he indicated.

“The levy will also be used for studies on electricity supply industry-related projects; improvement of quality of supply and services and renewable energy projects, amongst other things,” the minister said.

The levy will be collected by electricity utilities from electricity- consuming customers on behalf of the National Energy Fund (NEF).

http://www.globalpost.com/dispatch/news/asianet/130411/ministry-mines-and-energy-impose-electricity-levy