PHC Clears Free Electricity Withdrawal

The Peshawar High Court (PHC) has upheld the federal government's decision to abolish the longstanding facility of free electricity units for employees of the Peshawar Electric Supply Company (Pesco), Tribal Electric Supply Company (Tesco) and other electricity distribution companies (DISCOs), dismissing multiple writ petitions filed by affected employees.

According to media reports, a division bench comprising Justice Sahibzada Asadullah and Justice Farah Jamshed issued the 45-page judgment after reserving its verdict on July 13.

The federal government was represented by Additional Attorney General Sanaullah, while the DISCOs were represented by Barrister Asad-ul-Mulk during the proceedings.

The case arose after the federal government decided to end the decades-old concession as part of broader reforms aimed at reducing Pakistan's growing circular debt in the power sector.

The policy was approved by the caretaker government in December 2023, but its implementation had remained suspended since December 28, 2023, following interim orders issued by the PHC.

In its ruling, the court held that although WAPDA's original rules carried statutory status, those rules lost that status after being adopted by the DISCOs following the unbundling of WAPDA. As a result, the competent authority was legally empowered to amend or withdraw the benefit.

The bench also rejected the employees' argument that they had a legitimate expectation of retaining the concession, observing that decisions relating to economic policy fall within the executive's authority and generally do not warrant judicial intervention.

The court further dismissed objections regarding the caretaker government's power to approve the policy under Section 230 of the Elections Act, 2017, noting that caretaker administrations routinely make decisions concerning salaries, pensions and other recurring financial matters.

It also observed that the elected government did not revoke or modify the policy after assuming office, indicating its implicit endorsement of the decision.

With the petitions dismissed, the interim relief granted in December 2023 has been vacated, clearing the way for the federal government to permanently withdraw the free electricity facility for DISCO employees.