ISLAMABAD – July 1, 2025: In a move aimed at simplifying electricity bills and reducing consumer burden, Federal Energy Minister Awais Leghari has formally announced that the government will stop collecting Electricity Duty through electricity bills starting this month.
In letters addressed to all four provincial chief ministers, the minister urged the provincial governments to explore alternate methods for collecting provincial levies and duties, rather than using electricity bills as a revenue channel.
Leghari stressed that the current structure of electricity bills — which includes a mix of federal and provincial charges — has become increasingly complicated for ordinary consumers to understand. With electricity prices already under pressure, he said, these additional charges further confuse and frustrate the public.
“High tariffs are already a serious challenge for consumers,” Leghari noted. “Layering multiple taxes and duties into the monthly bill makes it even harder for people to make sense of what they’re actually paying for.”
He pointed out that the federal government is already working on a series of reforms to lower the overall cost of power — including revisiting contracts with Independent Power Producers (IPPs), reducing the Return on Equity for government-owned power plants, and implementing structural adjustments in the energy sector.
“As part of this broader reform agenda, we also want electricity bills to reflect the true cost of consumption — nothing more, nothing less,” the minister said.
To this end, the Power Division has begun removing non-electricity-related charges from consumer bills, with the discontinuation of electricity duty being the first major step. The government hopes this will result in a clearer, more transparent billing process where citizens can see exactly what they are paying for.
Leghari expressed confidence that the change will help build public trust and improve bill recoveries over time. He called on provincial chief ministers to support the effort by identifying alternative revenue collection methods that don’t rely on utility bills as a platform.
“We believe this shift will ultimately benefit everyone — consumers, power companies, and governments alike,” he added. “But it will require collective coordination and political will at both federal and provincial levels.”
