Govt to end collection of electricity duty via bills

Energy Minister Awais Leghari has written letters to all chief ministers regarding the decision to discontinue the collection of Electricity Duty through electricity bills starting from July 1, 2025. In his letters, the federal minister sought the support of all chief ministers in removing the complexities arising from multiple charges, taxes, and duties being collected through consumer bills. He stated that high electricity tariffs are already a significant challenge, and the additional burden of various levies further complicates the billing structure, making it difficult for consumers to understand and manage their electricity costs. The minister also highlighted the federal government's efforts to reduce power tariffs, including renegotiating Independent Power Producer (IPP) contracts, lowering the Return on Equity (ROE) for government-owned power plants, and implementing other structural reforms. Minister for Power Sardar Awais Ahmed Khan Leghari has written letters to all provincial Chief Ministers about decision to discontinue collection of Electricity Duty through electricity bills from next month@MoWP15 #News #RadioPakistan https://t.co/3s1v58B88O — Radio Pakistan (@RadioPakistan) June 30, 2025 "In parallel, we are also committed to simplifying electricity bills so that they primarily reflect the actual cost of power consumption, rather than serving as a collection mechanism for various additional charges," he added. Leghari wrote that, to achieve this objective, the Power Division is considering the removal of non-electricity-related charges from consumer bills. “As part of this initiative, the Power Division has decided to discontinue the collection of electricity duty through electricity bills starting from July 2025. We request provincial governments to explore alternative mechanisms for collecting provincial levies and duties, rather than relying on electricity bills as a collection channel,” he stated. He expressed confidence that this move will not only make electricity bills more transparent and easier to comprehend, but ensure that consumers only pay for the cost of electricity, rather than a mix of other charges. Energy minister also sought the cooperation of all chief ministers in identifying and implementing alternative revenue collection methods, which will be instrumental in making this initiative a success.