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