The federal government has decided to provide additional electricity tariff relief to consumers by utilizing funds collected through the Captive Power Levy, imposed under an agreement with the International Monetary Fund. According to sources, the government plans to pass on the benefit of the levy to electricity consumers on a monthly basis, with adjustments expected every two months depending on collections. The federal cabinet has already approved the use of captive power levy proceeds to reduce electricity prices. Under existing law, the levy on captive power plants will be increased in phases, reaching 20% by August 2026. The collected amount will be used to lower tariffs for all categories of electricity consumers, potentially leading to greater relief as levy collections rise.
