Government Announces Big Relief for Electricity Consumers
Good news Government Announces Big Relief for Electricity Consumers. The government of Pakistan has decided to provide a major relief to the people troubled by high electricity bills. Federal Minister for Energy Owais Leghari has sent a letter to all Chief Ministers in which it has been clearly stated that from July 2025, the collection of “provincial electricity duty” through electricity bills from domestic consumers will be abolished. This step will not only make the bills simple and understandable but will also save millions of consumers from additional charges.
Owais Leghari said in his letter that reducing the burden of taxes and charges on the public is the top priority of the government, as various fees included in the bills confuse the public. This decision will eliminate many unnecessary charges in electricity bills, and only the actual cost of electricity will be charged. The federal government has also highlighted other measures to make electricity cheaper.
Such as reviewing the contracts of IPPs and reducing the profit rate of government power plants. Owais Leghari has requested all provinces to suggest alternative means of collecting electricity duty so that consumers do not have to bear additional burden through bills. This is not only a financial relief but also a serious effort by the government to solve the real problems faced by consumers.
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Electricity Bills Will No Longer Include Provincial Duty
According to the official correspondence shared by Express News, Federal Minister Owais Leghari has formally requested provinces to stop collecting “Electricity Duty” via monthly electricity bills. This decision is expected to bring noticeable relief to millions of households already struggling with high utility costs.
The letter emphasizes that electricity bills are currently overloaded with various taxes, duties, and extra charges, which confuse and frustrate the general public. By eliminating one major component the provincial duty the government aims to simplify the billing process and reduce the financial stress on ordinary consumers.
Key Objective: Lower the Actual Cost Reflected in Bills
In his letter, the Energy Minister stated:
“We want electricity bills to reflect only the actual cost of electricity consumed. That is our target.”
The federal government is encouraging all provinces to suggest alternative ways to collect this duty, other than through electricity bills, so that consumers don’t face additional charges every month.
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Broader Government Strategy to Cut Power Costs
This step is part of a larger national effort to reduce electricity prices and improve the affordability of energy across Pakistan. Owais Leghari also highlighted several ongoing reforms:
- Renegotiation of Independent Power Producer (IPP) contracts
- Lowering the Return on Equity (ROE) for state-owned power plants
- Eliminating unnecessary surcharges and hidden charges in bills
These reforms aim to bring long-term price stability and improve transparency in the energy sector.
What This Means for Consumers
This new move is likely to:
✅ Reduce electricity bill amounts for domestic users
✅ Eliminate confusion caused by multiple small charges and taxes
✅ Make billing more transparent and understandable
✅ Build trust between consumers and the government
For now, provinces have been requested to submit their suggestions for alternative collection methods of electricity duty, so that consumers are not impacted.
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Final Thoughts
This decision marks a positive shift toward making electricity more affordable for the common man. With the burden of unnecessary taxes being removed and broader reforms in place, consumers can expect clearer bills and possibly lower charges in the future.
Stay connected with us for the latest updates on electricity reforms, bill relief programs, and government policy changes.
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