05-05-2025
- Business
- Business Recorder
PD clarifies CPP levy adjustments to be reflected in future bills
ISLAMABAD: Petroleum Division has clarified that any rebate or adjustment in the Captive Power Plants (CPP) levy will be considered in subsequent billing months based on the determination of FCA by Nepra applicable for the respective month of the power tariff. In a letter to Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC), the ministry explained the imposition and collection of levy under Grid (Captive Power Plants) levy ordinance 2025.
Earlier, the division instructed gas utilities to initiate billing of CPP's consumers under the newly enacted Grid (Captive Power Plants) Levy Ordinance, 2025. The move marks the formal commencement of levy collection from captive power users for the month of February 2025.
The division further instructed that the billing must be carried out in accordance with Section 3 of the ordinance, which mandates a levy on gas consumption by captive power plants not connected to the national grid.
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In an earlier letter it was directed to relevant gas distribution companies to ensure compliance without delay and urgently report the total amount already billed or to be billed to the concerned authorities.
The ordinance, promulgated earlier this year, is part of IMF's commitments that aimed at discouraging inefficient captive power generation and encouraging industrial consumers to shift toward the national electricity grid.
Copyright Business Recorder, 2025
