The All Pakistan Textile Mills Association (APTMA) has called on the Power Division to address inaccuracies in the Grid Transition Levy and adjust it according to the current electricity tariff rates.
In a letter to Power Minister Sardar Leghari, APTMA Secretary General Shahid Sattar raised concerns over discrepancies in the levy calculation and urged immediate rectification.
APTMA provided detailed calculations to the minister, showing that the correct levy, based on the methodology outlined in the relevant ordinance, should be a negative adjustment of Rs 556.31 per MMBTU, rather than the currently imposed Rs 791 per MMBTU.
The association explained that, since the levy was notified on March 7, 2025, several tariff reductions had been implemented, including Rs 1.70/kWh through the Tariff Differential Subsidy (TDS), Rs 1.90/kWh through the Quarterly Tariff Adjustment (QTA), and Rs 1.66/kWh due to the Fuel Price Adjustment (FPA). With these adjustments, the electricity tariff was reduced by Rs 5.26/kWh, which, according to APTMA’s calculations, should lower the levy to Rs 208 per MMBTU.
Additionally, APTMA pointed out that the current levy calculation is based on the peak industrial power tariff, which applies only for four hours per day, while the remaining 20 hours fall under the off-peak tariff. They have called for separate levies to be applied for peak and off-peak hours to more accurately reflect the true cost of grid electricity.
The letter also highlighted critical errors in the levy’s computation methodology. These include the outdated captive O&M cost of Rs 1.65/kWh, which should be updated to Rs 4.31/kWh when adjusted for rupee depreciation and inflation, and the inclusion of a Rs 3.23/kWh Debt Service Surcharge (DSS) in the tariff, which is not part of the official tariff as notified by NEPRA.
APTMA has urged the government to prioritize addressing these discrepancies and notify a revised levy that accurately reflects the current tariffs and their distribution across peak and off-peak periods.
Meanwhile, the Directorate General of Gas (Petroleum Division) has sought the Law Ministry’s opinion on the recovery of the levy from Captive Power Plants (CPPs). The Directorate clarified that billing for February and March 2025 had already been completed by Sui companies, but the CPP levy rate notification issued on March 7, 2025, had been temporarily suspended due to an order from the Islamabad High Court. Legal opinion is being sought on the retrospective applicability of the notified rate and the recovery of levy arrears from consumers. Once clarity is received, the Petroleum Division will direct Sui companies to proceed accordingly.
