Islamabad:
Energy Minister Awais Leghari has written letters to all chief ministers about the decision to interrupt the collection of electricity obligation through electricity bills starting from July 1, 2025.
In his letters, the federal minister sought support from all main ministers to remove the complexity that stems from several taxes, taxes and tasks collected through consumer bills.
He said high electricity stars are already a significant challenge and the extra burden of different charges 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 rifle, including renegotiation by independent power producer (IPP), which lowers the return on equity (ROE) for government -owned power plants and implement other structural reforms.
“In parallel, we are also obliged to simplify the electricity bills so that they primarily reflect the actual cost of power consumption, rather than serve as a collection mechanism for various additional fees,” he added.
Leghari wrote that the power department to achieve this target is considering the removal of non-electricity-related taxes from consumer bills.
“As part of this initiative, the Power Division has decided to discontinue the collection of electricity tax through electricity bills starting from July 2025. We request provincial governments to explore alternative mechanisms to collect provincial taxes and duties, rather than rely on electricity bills as a collection channel,” he said.
He expressed confidence that this step will not only make the electricity bills more transparent and easier to understand, but ensures that consumers only pay for the cost of electricity rather than a mixture of other fees.
Minister of Energy also sought the collaboration between all chief ministers to identify and implement alternative revenue collection methods that will help make this initiative a success.
