National Energy Fund

The National Energy Fund was established in 1990, by the Petroleum Products and Energy Act of 1990, Section 11, subsection 1 and 2, as amended in 2003. Presently NEF receive monies collected in respects of levies imposed on controlled petroleum products being Petroleum Equalisation levy, on actual petroleum product consumed per month in the country. The Fund also collect money on behalf of the Motor Vehicle Accident (MVA) Fund and Road Safety Secretariat (RSS) and remits it to the respective institutions. NEF also receive money collected by Nampower for the electricity levy.

NEF manage and administer the “Slate Account”. In terms of section 11 subsection (3) of the Petroleum Products and Energy Act of 1990 the slate account means the account which is being kept pursuant to an agreement between the Government of Namibia and suppliers of petroleum products for the purpose of determining, in accordance with a formula likewise agreed upon , the amount of compensation payable from time to time by the State to suppliers of petroleum products or by such suppliers to the State, as the case may be, in respect of losses suffered or profits gained by such suppliers as a result of fluctuations in the purchase price of petroleum products visa-a-viz the selling price thereof as determined under the Petroleum Products and Energy Act 13 of 1990.

The Fund manages and administers the fuel Road delivery subsidy to the rural or far outlying areas of Namibia.

On 01 July 2013, the Government of Namibia approved NEF electricity levy of 1.02 that can be applied towards:

  • Electrification funding (complementing GRN budgetary allocations);
  • Equity co-funding of electricity undertakings;
  • Loans to electricity undertakings for financing capital projects;
  • Electricity price subsidies;
  • Subsidizing electricity tariffs to avoid temporary price shocks;
  • Subsidizing electricity pricing of identified poor communities;
  • Financing of Regional Electricity Distributors (REDs)’ through soft loans for electricity related projects;
  • Guarantees for REDs;
  • Studies on Electricity Supply Industry (ESI) related projects;
  • Improvement of quality of supply and services;
  • Renewable energy projects;