In a major relief for electricity consumers, the federal government has decided to abolish the collection of provincial electricity duty through power bills from July 2025.

The move is aimed at reducing the financial burden on the public and simplifying billing structures.

Federal Minister for Energy Awais Leghari has sent formal letters to all provincial chief ministers, informing them that from July 2025, the collection of provincial electricity duty via electricity bills will be discontinued.

In his letter, Leghari stated that the government seeks to minimise taxes and extra charges included in electricity bills, as the multitude of duties creates confusion among consumers.

He also highlighted the federal government’s broader efforts to bring down electricity tariffs, including ongoing work on renegotiating agreements with Independent Power Producers (IPPs).

“Our goal is for the bills to reflect only the actual cost of electricity,” Leghari emphasised, urging provinces to propose alternative methods for collecting the duty if needed.

The minister clarified that the government intends to remove unnecessary surcharges and ensure that only the actual electricity consumption cost is charged to consumers through monthly bills.