The government has decided to provide relief to electricity consumers by imposing a Captive Power Levy under an IMF condition, with the collected amount to be used for reducing power tariffs.

According to sources, the federal cabinet has already approved transferring the benefit of this levy to consumers every month, with a plan to pass on the benefit after a two-month gap.

The levy on captive power plants will be applied in phases, starting with 5 percent, then increasing to 1 percent, rising to 15 percent in February and reaching 20 percent in August.

Sources state that as the levy percentage increases, additional relief in power tariffs is expected.

Authorities have warned that non-payment will lead to action against captive power plants, including possible gas supply disconnection.