The Senate Standing Committee on Finance and Revenue unanimously approved the Captive Power Plants Levy Bill 2025 on Thursday, aiming to reduce electricity prices for consumers by encouraging the use of excess power capacity.

Secretary Petroleum Momin Agha briefed the committee on the bill’s purpose, stating, “The objective is to reduce the burden of capacity utilization and ultimately lower electricity prices for the general public.”

Agha explained that a 5% levy was imposed immediately after the ordinance’s issuance, with planned increases to 10% from July 2025, 15% in February 2026, and 20% in August 2026.

The levy aims to boost demand for electricity by encouraging gas and RLNG-based industries using captive power to transition to the national power grid.He added, “The collection of the levy will be utilized to lower the tariff for power consumers,” echoing the Prime Minister’s commitment to reducing electricity costs.

The meeting, chaired by Senator Anusha Rahman Ahmad Khan, saw full agreement from members including Senator Munzoor Ahmed and Senator Muhammad Abdul Qadir, with Senator Mohsin Aziz attending virtually.

The bill is seen as a key step to improve power sector liquidity and promote efficient energy use in Pakistan.