ISLAMABAD: The federal government has approved the extension of the monthly levy rate applicable to captive power consumers of Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) to consumers of third-party companies supplying gas to captive power plants.
Sources said the decision was taken to ensure uniform application of the Off the Grid (Captive Power Plants) Levy Act, 2025, which was enacted and notified on June 10, 2025. The Act provides for the imposition and collection of a levy on natural gas or RLNG consumed by captive power plants, over and above OGRA-notified gas prices.
The federal cabinet also authorised the Petroleum Division to amend the Schedule of the Act, subject to vetting by the Ministry of Law and Justice, to include “any other company engaged in the sale of gas to captive power plants.”
The move follows legal advice confirming that third-party suppliers can be designated as “agent companies” for billing and collecting the levy. The decision aims to address regulatory gaps, avoid potential litigation, and ensure consistent levy implementation across all gas suppliers serving captive power plants.
Story by Mushtaq Ghumman
