A government plan to reduce electricity tariffs through a levy imposed on captive power plants under the terms agreed with the International Monetary Fund (IMF) has emerged, and the chances of its implementation are increasing.
According to sources, a detailed plan to make electricity cheaper through captive power levy has been shared with the IMF by the Ministry of Finance and Power Division. The law to impose a levy of up to 20 percent on captive power plants in phases according to IMF terms is being implemented.
Sources say that the money received from this levy will be used to provide tariff relief to all electricity consumers, including domestic, commercial and industrial categories.
According to government officials, a possible increase in the captive power levy could create scope to provide further relief to electricity consumers, however, the final decision will be subject to financial resources and regulatory approvals.
Plan to make electricity cheaper through captive power levy on IMF terms
