Federal Minister for Power Sardar Awais Ahmed Khan Leghari has written to all chief ministers, urging them to abolish the collection of Electricity Duty through electricity bills from July 2025, the Power Division said in a statement on Monday.
In his letters, Leghari called for provincial support in simplifying electricity bills by removing multiple taxes and duties that make billing complex and burdensome for consumers. “High electricity tariffs are already a significant challenge,” he wrote, adding that additional levies further complicate the billing structure and hinder consumer understanding of actual power costs.
The minister highlighted federal efforts to reduce power tariffs, including renegotiation of Independent Power Producer (IPP) contracts, lowering the return on equity (ROE) for government-owned power plants, and structural reforms aimed at improving the overall efficiency of the sector.
“To make electricity bills more transparent and easier to comprehend, the Power Division has decided to discontinue the collection of Electricity Duty through power bills from July 2025,” the letter stated. “We request provinces to explore alternative mechanisms for collecting their respective levies.” He expressed confidence that the move would help consumers better understand and manage their electricity expenses and emphasized that bills should reflect only the actual cost of consumption. The minister also called on provinces to propose and implement alternate revenue collection strategies to ensure the successful execution of this reform.