BeNewz
Related Articles
To discontinue the collection of Electricity Duty through electricity bills
Aftab Maken
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has concluded public hearings on two key electricity tariff adjustment requests — one from K-Electric and the other from the Central Power Purchasing Agency (CPPA-G) — and reserved its decisions, which are expected to be announced soon.
In a hearing on Monday, NEPRA reviewed K-Electric’s petition to reduce electricity rates by Rs 4.69 per unit for April under the monthly fuel charges adjustment (FCA). This proposed reduction in power tariff is aimed at giving relief to Karachi electricity consumers, who are already facing high inflation and rising utility bills.
During the session, the Power Division once again requested to postpone the hearing, citing that the federal government is considering taking the FCA issue to the federal cabinet. The division said it plans to include FCA under the uniform electricity tariff, which would standardize power rates across the country.
The Power Division further noted that a separate petition concerning the base tariff is already with NEPRA. It added that the government has limited fiscal space and cannot afford additional electricity subsidies.
However, NEPRA’s legal team responded strongly, clarifying that the fuel cost adjustment mechanism is governed by specific legal provisions, which are distinct from those of the base tariff. The team emphasized that the ministry cannot delay proceedings arbitrarily, as electricity pricing laws in Pakistan are clear and binding.
K-Electric CEO Moonis Alvi urged the regulator to act in accordance with the law. He argued that had the utility company sought a price increase instead of a reduction, the Power Division likely would not have intervened. “Our request is lawful. NEPRA must deal with it on legal grounds, not political ones,” Alvi asserted.
NEPRA Chairman said that the authority has taken note of all arguments and will review both K-Electric’s and the Power Division’s positions carefully. He assured stakeholders that NEPRA will issue its verdict strictly in line with its legal mandate.
Separately, NEPRA also held a hearing on CPPA’s petition to increase electricity rates by 10 paisa per unit for the rest of the country under the May fuel cost adjustment.
The proposed hike will be applicable only in July 2025 electricity bills and will not affect lifeline consumers, prepaid users, or electric vehicle charging stations. Additionally, this adjustment will not apply to K-Electric customers, as the company operates under a separate arrangement.
The hearing on CPPA’s petition also concluded with NEPRA reserving its decision.
With power tariff updates becoming a routine part of energy sector news in Pakistan, both domestic and industrial consumers eagerly await NEPRA’s final decisions, which will determine the actual impact on their upcoming electricity bills.
Awais Leghari’s letter to Provincial Govts
Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari has written letters to all chief Ministers about the decision to discontinue the collection of Electricity Duty through electricity bills starting from July 2025, said an official press release of the Ministry on Monday.
In his letters the Federal Minister sought support of all Chief Ministers in removing complexity of due to arising from multiple charges, taxes, and duties being collected through consumer bills.
He said that high electricity tariffs are already a significant challenge, and the additional burden of various levies further complicates the billing structure, making it difficult for consumers to understand and manage their electricity costs.
The Federal Minister in his letters highlighted the Federal Government efforts regarding various measures to reduce power tariffs, including renegotiating Independent Power Producer (IPP) contracts, lowering the Return on Equity (ROE) for government-owned power plants, and implementing other structural reforms.
He said that In parallel, we are also committed to simplifying electricity bills so that they primarily reflect the actual cost of power consumption rather than serving as a collection mechanism for various additional charges.
Sardar Awais Ahmed Khan Leghari in his letter wrote that to achieve this objective, we are considering the removal of non-electricity-related charges from consumer bills.
“As part of this initiative, the Power Division has decided to discontinue the collection of Electricity Duty through electricity bills starting from July 2025. We request provincial governments to explore alternative mechanisms for collecting provincial levies and duties, rather than relying on electricity bills as a collection channel.”
He expressed the confidence that hhis will not only make electricity bills more transparent and easier to comprehend but also ensure that consumers are paying only for the cost of electricity, rather than a mix of other charges.
The Federal Minister also sought cooperation of all Cheif Ministers in identifying and implementing alternative revenue collection methods will be instrumental in making this initiative a success.
