APTMA Urges Correction of Grid Transition Levy Discrepancies

The All Pakistan Textile Mills Association (APTMA) has issued a forceful demand to the Power Division to correct inaccuracies in the Grid Transition Levy and align it with current electricity tariff rates. In a pointed letter to Power Minister Sardar Leghari, APTMA Secretary General Shahid Sattar highlighted significant discrepancies in the levy’s calculation, pressing for immediate action.

APTMA presented detailed calculations, revealing that the levy, based on the correct methodology, should reflect a negative adjustment of Rs 556.31 per MMBTU, starkly contrasting the inflated Rs 791 per MMBTU currently imposed. The association noted that since the levy’s notification on March 7, 2025, tariff reductions—including Rs 1.70/kWh via the Tariff Differential Subsidy (TDS), Rs 1.90/kWh through the Quarterly Tariff Adjustment (QTA), and Rs 1.66/kWh from the Fuel Price Adjustment (FPA)—have lowered the electricity tariff by Rs 5.26/kWh. These adjustments, per APTMA, should reduce the levy to Rs 208 per MMBTU.

APTMA further criticized the levy’s reliance on the peak industrial power tariff, applied for only four hours daily, while the off-peak tariff governs the remaining 20 hours. The association demanded separate levies for peak and off-peak periods to accurately reflect grid electricity costs. The letter exposed critical errors in the computation, including an outdated captive O&M cost of Rs 1.65/kWh—which should be Rs 4.31/kWh when adjusted for rupee depreciation and inflation—and the erroneous inclusion of a Rs 3.23/kWh Debt Service Surcharge (DSS), absent from NEPRA’s official tariff.

APTMA urged the government to prioritize rectifying these flaws and issue a revised levy that mirrors current tariffs and their peak/off-peak distribution. Meanwhile, the Directorate General of Gas (Petroleum Division) has sought the Law Ministry’s guidance on recovering the levy from Captive Power Plants (CPPs). Billing for February and March 2025 was completed by Sui companies, but the March 7, 2025, levy rate notification was suspended by an Islamabad High Court order. The Petroleum Division awaits legal clarity on retrospective application and arrear recovery before instructing further action.