Petroleum Ministry Seeks CPP Grid Shift Data
Government seeks power sector data to prepare IMF case on captive power levy.
Minister for Petroleum and Natural Resources Ali Pervaiz Malik has approached Power Minister Sardar Awais Ahmad Khan Leghari seeking detailed data on captive power consumers who shifted from gas to the national grid.
The petroleum minister requested the data to help prepare recommendations for the International Monetary Fund regarding the captive power levy. Officials said the Petroleum Division requires updated information on electricity consumption by industries that previously operated gas-based captive power plants.
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According to report, the Petroleum Division had earlier requested power uptake data of captive consumers that were nudged to shift to grid electricity after the imposition of the levy. However, officials noted that the required data from February 2025 is still awaited.
Ali Pervaiz Malik has formally requested the Power Minister to share complete customer-wise data. Officials said the information is necessary to finalize documentation and policy recommendations related to the captive power levy.
The move comes as the government reviews the impact of policy measures aimed at discouraging gas-based captive power generation. Authorities have been encouraging industries to switch to electricity from the national grid instead of relying on gas or re-gasified liquefied natural gas.
Earlier, a letter sent to the Petroleum Division referred to a reconciliation exercise carried out by the Sui gas companies. The exercise was conducted in coordination with power distribution companies and K-Electric.
According to the findings of the reconciliation process, most captive power plants already had grid connectivity. Officials said many facilities also possessed the sanctioned electricity load required to operate through the national power system.
The reconciliation exercise compared gas or RLNG consumption of captive plants with their sanctioned electricity loads. The review aimed to determine whether industries could shift their energy consumption from gas-based generation to electricity supplied through the grid.
Officials said the results showed that a majority of captive power plants were technically capable of switching to grid power. The findings strengthened the government’s position that industrial consumers could gradually reduce dependence on gas-based generation.
To further verify the transition of captive power plants from gas or RLNG to electricity, the Power Division had earlier been asked to provide detailed operational data. The requested information includes electricity consumption levels of each captive facility connected with distribution companies.
Authorities also requested data on the utilization of sanctioned load or any newly approved electricity load. The data is required for each captive power plant linked with distribution companies and K-Electric.
Officials said the Petroleum Division is also seeking figures related to incremental electricity sales revenue. The data would help determine how much additional revenue power distribution companies earned after captive consumers shifted to grid electricity.
The requested information will support policy discussions with international lenders, including the IMF. The government is currently reviewing fiscal and energy sector reforms as part of ongoing economic commitments.
Officials believe that accurate data on captive power consumption is necessary to assess the effectiveness of the levy. The information will also help authorities determine whether the policy has successfully encouraged industries to transition toward grid electricity.
The Petroleum Division expects the data to clarify the extent of industrial migration from gas-based captive power plants to the national electricity system. Officials say the figures will form a key component of the government’s policy case regarding the captive power levy.