Senate Panel Approves Captive Power Plants Levy Bill 2025 to Cut Electricity Costs

The Senate Standing Committee on Finance, chaired by Senator Anusha Rehman, today unanimously approved the Captive Power Plants Levy Bill 2025. Secretary Petroleum Momin Agha briefed the committee on the bill, stating that its purpose is to reduce the burden of capacity utilization and ultimately lower electricity prices for the general public. He informed the committee that a 5% levy was immediately imposed after the issuance of the ordinance, with the rate set to increase to 10% from July 2025, 15% in February 2026, and 20% in August 2026. Additional Secretary Finance explained that captive power plants were initially asked to shut down, leading companies to seek legal recourse. Consequently, the government decided to impose a levy instead of enforcing closure. He noted that out of 5,500 industrial connections, 1,100 have captive power plants, and these industries are currently operating on normal tariffs. Petroleum Division officials informed the committee about the increasing gas prices for captive power plants, rising from Rs. 2,750 per MMBTU in February 2024 to Rs. 3,000 in June 2024 and Rs. 3,500 in February 2025. Senator Mohsin Aziz strongly opposed the bill, calling it “anti-Pakistan” and stating that it would lead to the closure of industries after they were previously encouraged to install captive power plants due to a lack of electricity in the country. He argued that the bill would effectively “murder” industries. Chairperson of the committee, Senator Anusha Rehman, countered Senator Aziz’s arguments, suggesting his stance appeared to oppose cheaper electricity. Senator Aziz denied this. Senator Rehman then noted that Senator Aziz, being online, his vote would not be counted. Senator Manzoor Kakar expressed his support for the bill, calling it “very good,” and Senator Anusha Rehman echoed this sentiment, highlighting the Prime Minister’s promise to reduce electricity costs. Ultimately, the committee unanimously passed the Captive Power Plants Levy Bill 2025.