The Lahore High Court has upheld the federal government’s decision to monetise free electricity units previously granted to senior officers of the Water and Power Development Authority and related power companies, affirming the policy as a lawful administrative reform.
In a judgment announced on Friday, Justice Malik Javid Iqbal Wains dismissed a constitutional petition challenging the Ministry of Energy’s notification dated 5 December 2023. The court ruled that the provision of free electricity units was not a statutory or vested right, but rather a service-linked privilege that could be altered by the government.
The policy affects officers in Basic Pay Scale 17 and above, who were previously allocated free electricity units collectively amounting to around 75 million units annually, at an estimated cost of Rs4 to Rs4.5 billion. Under the revised system, officers are required to pay their electricity bills, while a fixed monetary equivalent of the benefit has been incorporated into their salaries.
The petition, filed by the Gujranwala Electric Power Company Engineers and Officers Association, argued that the withdrawal of free units was unconstitutional and discriminatory, particularly as employees in lower pay scales continue to receive the benefit. However, the court rejected this claim, holding that officers constitute a distinct cadre and that differential treatment based on reasonable classification does not violate constitutional guarantees.
Representing the government, the Assistant Attorney General contended that the move was part of a broader financial restructuring aimed at addressing inefficiencies, circular debt, and operational losses in the power sector. The court agreed, observing that economic and fiscal policy decisions fall within the executive’s domain and do not warrant judicial interference unless clear illegality is established.
Power Minister Awais Leghari welcomed the ruling, describing the abolition of free electricity units as a long-standing public demand and a step towards sectoral reform.