ISLAMABAD:Federal Energy Minister Awais Leghari has formally written to all provincial chief ministers, announcing the government’s decision to discontinue the collection of Electricity Duty through power bills starting July 1, 2025.
In his communication, Leghari urged provincial governments to support efforts to streamline billing by eliminating various add-on charges that burden consumers. He emphasized that already high electricity tariffs are made even more complex and confusing due to multiple taxes and levies being bundled into monthly bills.
The minister underscored the federal government’s ongoing reforms to bring down electricity costs, including renegotiating contracts with Independent Power Producers (IPPs), reducing Return on Equity (ROE) for state-run plants, and introducing structural changes to the power sector.
“To ensure transparency, we aim to simplify electricity bills so they reflect only the true cost of consumption, rather than serving as a platform for collecting unrelated charges,” Leghari stated.
He called on provincial governments to explore alternative mechanisms for collecting levies and duties, stressing that the move would enhance clarity and fairness for consumers.
Leghari expressed confidence that the initiative will lead to more understandable and transparent electricity billing, and reiterated the need for provincial collaboration in developing alternative revenue collection strategies.
Story by Zaigham Naqvi
