Senate panel approves captive power plants levy bill

ISLAMABAD: The Senate Standing Committee on Finance has unanimously granted its assent to the bill of Captive Power Plants Levy 2025.

Senator Mohsin Aziz, belonging to PTI, opposed the bill, but he was not present in the meeting physically, so the Convener of the Senate Panel did not count his vote. The Senate Standing Committee on Finance and Revenue held its meeting under the chairpersonship of Senator Anusha Rahman here on Thursday. It cleared the bill in its original form without any changes.

Briefing the committee on the bill, Secretary of Petroleum Momin Agha, said its purpose is to reduce the burden of capacity utilisation and ultimately lower electricity prices for the general public. He informed the committee that a 5pc levy was immediately imposed after the issuance of the ordinance, with the rate set to increase to 10pc from July 2025, 15pc in February 2026, and 20pc in August 2026. The objective of the bill is to increase the electricity demand, utilisation of excess unused capacity, and to avoid pressure on power sector liquidity, eventually encouraging the transition of gas / RLNG-based industry (captive power) to the power grid. The collection of the levy will be utilised to lower the tariff for the power consumers.

The bill was introduced, echoing the sentiment, highlighting the prime minister’s promise to reduce electricity costs. Ultimately, the committee unanimously agreed with the Captive Power Plants Levy Bill 2025.