Senator Kamal Ali Agha proposes abolition of fixed charges on electricity bills

During a meeting of the Standing Committee on Finance of the Senate, Senator Kamal Ali Agha put forward a proposal calling for the abolition

During a meeting of the Standing Committee on Finance of the Senate, Senator Kamal Ali Agha put forward a proposal calling for the abolition of fixed taxes imposed on electricity bills. He argued that these fixed charges have become an unbearable burden for the public and should be reviewed and removed in order to provide relief to consumers.

While speaking during the committee session, Senator Kamal Ali Agha said that fixed charges on electricity bills have become a form of punishment for ordinary citizens. He stated that these charges are not linked to actual electricity consumption and therefore create an unfair billing system. According to him, people are forced to pay heavy amounts even when their electricity usage is low, which defeats the principle of fair and transparent billing based on usage.

To support his argument, the senator referred to his own electricity billing situation in his official residential accommodation. He explained that the value of electricity units in his own lodge was approximately 6,200 rupees, while the fixed charges imposed on the same bill amounted to around 6,800 rupees. He highlighted this as an example of how fixed charges can exceed the actual cost of consumed electricity, making the system disproportionate and burdensome.

Senator Kamal Ali Agha further pointed out what he described as a serious imbalance in the billing structure. He said that even a person who consumes only 100 units of electricity ends up paying charges equivalent to nearly 400 units once all fixed costs and additional charges are included. In his view, this means that consumers are effectively being overcharged and are paying far more than their actual usage, which he considered unjust and unacceptable.

He urged the committee to take notice of this issue and recommended that fixed charges be declared unjust and oppressive. He suggested that the committee should formally recommend their abolition, arguing that such charges place unnecessary financial pressure on the public, particularly on middle- and low-income households who are already struggling with rising electricity prices and inflation.

During the discussion, members of the committee expressed concern over the increasing dissatisfaction among the public regarding electricity bills and the overall cost of utilities. The issue of fixed charges was identified as one of the key factors contributing to high monthly bills, even for consumers who use minimal electricity.

The Chairman of the Standing Committee on Finance, Senator Saleem Mandviwalla, responded to the concerns raised during the meeting. He stated that after the passage of the federal budget, the Power Division should be summoned before the committee. He added that officials from the Power Division would be asked to provide a detailed explanation regarding the structure of electricity tariffs, including the justification for fixed charges.

According to the chairman, the committee intends to thoroughly examine the matter and engage with relevant authorities to understand whether these fixed charges are necessary for maintaining the electricity distribution system or whether they are causing undue hardship to consumers. He emphasized the importance of holding a detailed discussion with the Power Division in order to assess whether reforms in the billing structure are required.

Overall, the meeting reflected growing concern within parliamentary circles about the fairness and transparency of electricity billing practices in the country. Senator Kamal Ali Agha’s proposal to eliminate fixed charges highlighted widespread public frustration with rising utility costs. The committee’s response suggested that the issue is likely to be taken up for further review in upcoming sessions, with the possibility of policy-level discussions involving the Power Division and other relevant stakeholders.