ISLAMABAD – In a move aimed at simplifying electricity bills for millions of consumers, Federal Energy Minister Awais Leghari has reached out to all provincial chief ministers, urging them to support the government’s decision to stop collecting electricity duty through monthly power bills — starting July 1, 2025.
The energy minister explained in his letters that electricity bills have become overloaded with all sorts of charges — taxes, surcharges, and duties — making them not only expensive but also confusing for the average household.
“Electricity tariffs are already a major concern for people,” Leghari pointed out. “Adding various levies on top of that just complicates things further. Consumers should know exactly what they’re paying for — and why.”
He said the federal government is already working on multiple fronts to bring down power costs. This includes renegotiating deals with Independent Power Producers (IPPs), reducing profits (Return on Equity) for state-run power plants, and initiating other key structural reforms in the energy sector.
At the same time, he added, the Power Division is working to make billing simpler and more transparent. The idea is to ensure bills reflect only the actual cost of electricity usage — not serve as a tool to collect unrelated provincial taxes or fees.
“As a first step, we’re phasing out electricity duty from power bills starting July next year,” Leghari wrote. He asked provincial governments to explore other ways of collecting their levies, rather than piggybacking on electricity bills.
He expressed hope that this change will help restore clarity and fairness in billing and will build public trust. The energy minister also called for collective support from all provinces to come up with practical alternatives for revenue collection that don’t add to the consumer’s electricity burden.
