ISLAMABAD: The Petroleum Division has clarified that any rebates or adjustments related to the Captive Power Plants (CPP) levy will be incorporated in future billing cycles, aligned with the Fuel Cost Adjustment (FCA) determinations made by NEPRA for the respective month’s power tariff.
In a recent communication to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC), the ministry elaborated on the implementation of the Grid (Captive Power Plants) Levy Ordinance, 2025. The ordinance mandates the imposition of a levy on gas consumed by CPPs that are not connected to the national electricity grid.
The ministry confirmed that billing for CPP consumers should follow the guidelines outlined in Section 3 of the ordinance and must begin with consumption recorded in February 2025. Gas utilities have also been directed to immediately report the amounts already billed or to be billed under the levy.
The imposition of this levy aligns with Pakistan’s commitments under the International Monetary Fund (IMF) program, aiming to discourage inefficient captive generation and incentivize industrial users to transition to the national grid.
Story by Wasim Iqbal
