Senate Committee approves additional electricity bill surcharges for FY26

June 19, 2025 (MLN): The new fiscal year is set to begin with challenges for electricity consumers, as the Senate Standing Committee on Finance has approved the imposition of additional surcharges on electricity bills.

This move aims to generate extra funds to repay circular debt and associated interest payments.

The decision was taken during a committee meeting chaired by Senator Saleem Mandviwalla, where officials from the Ministry of Energy briefed the members on the proposed surcharges.

As per the briefing, the current surcharge ranges between Rs2.83 and Rs3.23 per unit, as per the press release issued.

In line with International Monetary Fund (IMF) conditions, the finance bill now authorizes the Ministry of Energy to implement these additional charges.

Furthermore, ministry officials revealed that the existing cap on surcharges is being lifted, allowing room for further increases if needed.

To address the growing circular debt, the government has already secured a loan of Rs1.27 trillion from commercial banks.

Consumers will now bear the burden of repaying this debt through the newly approved surcharges, which received unanimous backing from the Senate Standing Committee on Finance.