ISLAMABAD: The government has started preparations to provide more relief to consumers, and in this regard, a plan to make electricity cheaper has also come to light.
The federal government has decided to provide another relief to electricity consumers, under which a plan has been prepared to use this money to reduce electricity rates after imposing the captive power levy as per the IMF condition, which has paved the way for relief in the power sector.
According to a private TV report citing government sources, the money received from the captive power levy will be used to provide relief to electricity consumers on a monthly basis. The government expects that as the captive power levy rate increases, it will be possible to provide more relief in electricity tariffs in the same proportion. It should be noted that the federal cabinet has already approved the transfer of the benefit of the captive power levy to electricity consumers.
Sources have further informed that the benefit of the monthly collected levy will be adjusted in the electricity tariffs at intervals of 2 months instead of being given directly every month. For this purpose, the federal government has enacted a law to impose a levy of up to 20 percent on captive power plants in phases, which will be implemented in different phases.
According to the details of the project, a 5 percent levy has been imposed immediately on captive power plants, while in the second phase, this rate will be increased to 10 percent. It has been further stated that the levy will reach 15 percent in February 2026, and the levy rate on captive power plants will reach 20 percent in August 2026, the amount received from which will be used to reduce the tariffs of electricity consumers of all categories of the power sector.
The report further states, citing government sources, that in case of non-payment of levy, action will be taken against captive power plants, while in case of permanent default, gas supply to the concerned captive power plant will be disconnected. Every captive power plant will be obliged to pay a levy to the federal government on the use of gas or LNG.
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