ISLAMABAD: Federal Minister for Energy, Owais Khan Leghari, has written letters to all provincial chief ministers, urging them to end the collection of “electricity duty” through electricity bills from July 2025.
According to a statement issued by the Power Division on Monday, the minister stated that the decision aims to reduce the burden of taxes in monthly electricity bills. He said many consumers are confused by the various duties and charges added to their bills.
The letter also highlighted ongoing federal efforts to bring down power tariffs. These include reviewing agreements with Independent Power Producers (IPPs) and lowering the Return on Equity (ROE) for government-run power plants.
“Our goal is for electricity bills to only reflect the actual cost of electricity consumed,” Leghari stated. He advised provinces to find alternative ways to collect this duty instead of using electricity bills.
The minister added, “We want to end all extra charges. Consumers should only pay for the electricity they use.”
KE relief decision delayed
Meanwhile, a related power sector issue has triggered public criticism and legal questions. The Power Division has requested the National Electric Power Regulatory Authority (NEPRA) to delay approval of a Rs4.69 per unit relief for K-Electric consumers under the April 2025 Fuel Charges Adjustment (FCA).
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At a public hearing chaired by NEPRA Chairman Waseem Mukhtar, the authority reviewed K-Electric’s application to reduce April’s FCA. If approved, it could provide a total relief of Rs7.17 billion to Karachi-based consumers. However, the Power Division argued that such relief would require budgetary support from the federal government and should be deferred until the Cabinet finalises a nationwide uniform tariff policy, under which Rs125 billion has been allocated for K-Electric subsidies starting July 1.
NEPRA’s legal team opposed the delay, saying the regulator cannot legally hold back FCA relief without a formal federal cabinet directive. NEPRA reminded the Ministry that FCA adjustments are formula-based and automatically passed through to consumers under the law.
During the hearing, consumers and industrial groups expressed frustration, accusing the Power Division of political interference. Many pointed out that the Ministry never objected when FCA led to increased bills, but was now blocking relief.
K-Electric CEO Moonis Alvi stressed that the company had met all procedural requirements and would follow NEPRA’s final decision, but warned that continued delays would hurt investor confidence and disrupt financial planning.
NEPRA has reserved its decision and will announce the outcome after further verification.
