ISLAMABAD: The Directorate General (Gas) of the Petroleum Division has directed both gas utility companies—Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL)—to collect the levy from Captive Power Plants (CPPs) for the billing month of February 2025.
In a letter addressed to the Managing Directors of both Sui companies, Director General (Gas) Abdul Rasheed Jokhio stated:
“I am directed to refer to the Petroleum Division’s letter dated April 11, 2025, and to advise both gas utility companies to proceed promptly with the billing and collection of the notified levy from the concerned captive consumers for February 2025, in accordance with Section 3 of the CPP Levy Ordinance, 2025.”
Earlier, the Directorate General had sought a legal opinion from the Ministry of Law regarding the recovery of the levy on CPPs.
In another communication to relevant stakeholders, the Directorate clarified that while the billing for February and March 2025 had already been completed by the Sui companies, the levy notification issued on March 7, 2025, was suspended until an amended order was issued by the Islamabad High Court. As a result, a recovery mechanism for the levy arrears for these months—within the legal framework of the CPP Levy Ordinance, 2025—is currently being developed.
Legal input has been sought from both the Law and Justice Division and the Attorney General’s Office regarding the retrospective applicability of the March 7, 2025, levy rate and its recoverability from CPP consumers.
According to DG (Gas), it is understood that the levy rate notification of March 7 remains valid and has not been withdrawn. However, the Petroleum Division will issue further instructions to the Sui companies once legal clarity on the matter is received.
On April 3, 2025, DG ( Gas) further clarified that any rebate / adjustment in the CPP levy will be considered in subsequent billing months based on the determination of Fuel Charges Adjustment (FCA) by NEPRA applicable for the respective month of the power tariff.
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