Using Interest to Pay Electric Bills
Fatwa No: 83783

  • Fatwa Date:31-1-2002 - Thul-Qi'dah 18, 1422
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Question

Here in Surat (India) electricity companies use to collect electricity charges against supply of electricity. In addition to that they use to collect another charge called Fuel Adjustment Charge. About this charge their explanation is as below:
1) While distributing power from main junction to substations and from there to actual users about 7% is lost which happen to be a normal loss. This loss is collected by the name of fuel adjustment charge.
2) Another reason for collecting this charge is due to theft in power by some consumers and due to corruption in supply of electric devices.
Due to this theft and corruption innocent persons have to suffer a lot by making unnecessary payment named as fuel adjustment charge
My question is that whether we have to suffer such loss or we can pay this charges by the Interest Income which we earn on the balance of saving accounts. Or give us the proper guideline in this regard.

Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

 

Indeed the act of the government or electric companies to charge innocent persons for the crimes of others is total injustice and forbidden. But, this unfairness does not justify us to deal with Riba (usury/interest) or to use it.

In fact, the money received by Riba is actually forbidden money; using it is not permissible. So, a Muslim should get rid of that money and should repent from the sin of dealing with Riba.

However, the Muslim scholars agree that one may use the money of Riba in charity, such as giving it to the poor, needy persons or in paving roads, etc.

No doubt that one benefits by paying taxes, fees and fines from the money of Riba and saves his money, so it is not permissible.

Allah knows best.

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