Gas prices for captive power producers revised
Business
Tariff for export-oriented industries hiked by Rs350 MMBtu, a Rs100 cut for non-export
ISLAMABAD (Dunya News/Web Desk) – As the federal cabinet on Monday decided to raise gas tariff, new rates have also been fixed for captive power producers, sources say, thus meeting one of the key demands set by the International Monetary Fund (IMF).
The move comes days just days before Nov 2 when an IMF team is scheduled to arrive for the first review of the $3 billion standby arrangement, which will cover various subjects – including the privatisation of loss-making state-owned enterprises – and the progress made on these.
A successful review will pave the way for the release of $710 million as second tranche in December, followed by the second review later before the expiry of the nine-month agreement next year on March 31.
The sources say the gas price for export-oriented captive power producers has been hiked by Rs350 to Rs2,400 MMBtu, while there is a Rs100 cut for those in non-export sector to the level of Rs2,500 MMBtu.
Previously, the gas prices for export-oriented and non-export captive power producers were Rss2,050 MMBtu and Rs2,600 MMBtu respectively.
A captive power producer refers to the electricity generation facility used and managed by an industrial or commercial energy user for their own energy consumption. They can operate off-grid or connect these to power plants to the electric grid to exchange excess generation.
