Taxes on Electricity Bill In Pakistan 2024-25 | MEPCO Bill detail 

Taxes are always a topic to discuss as they highly affect the amount of money you are paying to your MEPCO Electricity Bills. There are different types of taxes on electricity bills which are the additional charges input in your MEPCO Electricity Bills from the government of Pakistan.

If you have not yet seen your MEPCO Bill for June 2024, You can check your bill here:-

List of the Taxes on Electricity Bills of Pakistan 

In addition to the charges for consumed electricity, the MEPCO Bill includes additional taxation.

The list of those taxes is explained in detail in this post.

  • FPA (fuel price adjustment)
  • TRS Surcharge
  • FCS Surcharge
  • Deferred amount
  • ATR Tariff
  • QTR Tariff
  • Adj/DMC
  • EDS Surcharge

Taxes on Electricity Bills | Know about its complete Detail

There are a number of different Charges which are counted along with the number of charges at which you are consuming the MEPCO Power and are named as the taxes on the Electricity Bill.

You might be worried about paying a high amount for your Bills so you can try the top 10 ways to reduce Mepco bill your MEPCO Electricity Bills very efficiently.

taxes on electricity bills

Fuel Price Adjustment (FPA)

There are many pieces of equipment that need to be run on fuel therefore the prices are set according to their usage. Fuel Price Adjustment (FPA) is not fixed, it changes when there is a change in the Fuel price by the government. Sometimes it increases and sometimes it decreases. NEPRA maintains these variations in FPA in electricity bills. 

Fuel price adjustment (FPA) is a system used by energy distribution firms to change power prices based on actual fuel costs. This is done to ensure that electricity customers are not overcharged or undercharged.

You can calculate the FPA on your MEPCO Bill by using the following formula:

FPA = (Actual cost of fuel – benchmark cost of fuel) * Total units of electricity consumed

Fuel Compensation Surcharge

The Fuel Surcharge (FSC) is a variable component of power bills that varies according to the cost of the fuel used to generate electricity. This fee, which is usually levied as a percentage of the base power rate, is intended to compensate energy suppliers for growing or lowering fuel costs.

There are a few factors affecting the FSC charge 

Regulatory Framework: The regulatory environment safeguards customers from high price volatility, and some jurisdictions may have procedures in place to limit or cap FSC increases.

Fuel Price: This is the most basic and vital factor affecting the FSC charge as the price of fuels in the market often changes sometimes it increases and sometimes it decreases therefore the change in the FSC charge is also based on its transformation.

TRS Surcharge 

The Transmission and Distribution Surcharge is a tax for particular areas’ implementation. The second sort of electricity bill tax is used to upgrade and modernize the distribution and transmission infrastructure in such areas. The value of taxes on power bills varies according to region and investment required.

You can easily calculate your TRS charge once you know your total cost of infrastructure and your consumed electricity by the following method 

TRS = Total cost of infrastructure / Total units of electricity consumed

Also Read: MEPCO CNIC Registration

ATR Tariff Tax 

Another name for ATR tariff is the Aditional Transmission and Restoration Tariff, which is an extra charge added to power bills to cover the costs of maintaining the transmission and distribution system. Electricity bills are taxed in order to build and update the infrastructure in that area.

The ATR Tariff charge, particularly for large users, can have a considerable impact on electricity rates.

You can Calculate the amount of ATR Tariff tax on Electricity Bills through the formula given below 

ATR tariff = Total cost of infrastructure / Total electricity consumed

Deferred Amount 

This is an amount of extra money added to the monthly Bill charge of a MEPCO Consumer if he does not pay his fee within the due date. Its purpose is to encourage customers to pay their bills on time. It’s commonly known as a late fee. To avoid additional tax costs on your electricity account, pay your payment on the due date and time.

You can also make your MEPCO Bill payment through Online application.

If the MEPCO bill was due on March 12 and the current date is March 14, the delayed days are 2. If the daily deferred charges are 2%, the deferred amount is:

2 days * 2% * total bill payment = deferred amount.

The deferred amount can be calculated using the following formula:

  • Determine the bill’s due date.
  • Determine the number of days that have passed.
  • Multiply the number of delayed days by the number of daily deferred charges.

Quarterly Transmission and Restoration (QTR)

Customers are charged a quarterly transmission and distribution (QTR) tariff for the transmission and distribution of electricity. The major goal of the QTR charge is to ensure that Pakistan’s energy distribution companies (DISCOs) have sufficient finances to maintain and upgrade the country’s power infrastructure.

QTR Charge Rate Influencing Factors:

  • The true cost of maintaining and modernizing the power grid.
  • The region’s power consumption patterns
  • The DISCO Regulatory policies’ fiscal health

QTR Tax on Electricity Bills can be calculated by the formula given below:

QTR Tariff = Total cost of infrastructure / Total electricity consumed

Adj/DMC Tax

Adjustment or Demand Management Charge (Adj/DMC) is a cost levied for the demand management program in order to increase the efficiency of the electric system by lowering peak demand for electricity.

It can be calculated by using the following formula:

Adj/DMC = Total cost of demand and management programs / Total electricity consumed.

Electronic data system (EDS) surcharge

The Electronic Data System (EDS) surcharge is a minor component of MEPCO’s electricity bills that covers the costs connected with the EDS system’s maintenance and operation. Typically, this surcharge is applied as a fixed charge per customer or as a percentage of total electricity consumption.

Main Purpose of EDS Surcharge:

The MEPCO EDS system is an important piece of infrastructure that allows for the electronic communication of power consumption data from individual meters to the billing system.

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