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Re:

Lahore High Court Upholds Monetization of Free Electricity for Power-Sector Officers

The Lahore High Court upheld the policy replacing free electricity units with fixed monetary amounts for in-service BPS-17-and-above officers at WAPDA and specified power-sector entities.
From TheFinanceBase Team3 min to read
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The Lahore High Court has upheld the policy replacing free electricity units with fixed monetary amounts for in-service BPS-17-and-above officers at WAPDA and specified power-sector entities. The 16 February 2026 judgment dismissed the GEPCO Engineers & Officers Association’s challenge to the Ministry of Energy (Power Division) notification of 5 December 2023. It does not apply to every Grade-17 officer in Pakistan.

What did the Lahore High Court decide?

In Writ Petition No. 171 of 2024, the court upheld the government’s monetization policy and dismissed the association’s constitutional petition. Justice Malik Javid Iqbal Wains concluded that the notification “does not warrant any interference by this court and the same is hereby upheld,” as quoted by Dawn.

The notification requires covered employees to pay electricity bills issued by their respective distribution companies against the reference numbers already on file. The former unit benefit is represented instead by fixed amounts tied to the employee’s grade and, for some grades, employing category.

Which officers are covered?

The policy concerns in-service BPS-17-and-above employees of WAPDA and specified ex-WAPDA entities: distribution companies (DISCOs), generation companies (GENCOs), the National Transmission and Despatch Company (NTDC), and the Power Information Technology Company (PITC). It is not a ruling about all BPS-17 officers or all public-sector employees.

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The National Assembly document records that the Federal Cabinet decided on 26 October 2023 to monetize free units for BPS-17-and-above employees; the Power Division conveyed the decision to the relevant organizations on 5 December 2023. The judgment concerns that notification.

What amounts does the notification list?

The judgment reproduces a schedule of former unit allocations and corresponding monetization amounts. The amounts were calculated using the tariff notified in S.R.O. No. 938–947(1)/2023 on 26 July 2023, excluding taxes and duties; the judgment says the rates were frozen for the future.

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Grade Non-generation and WAPDA Generation
BPS-17 450 units; Rs 15,858 650 units; Rs 24,570
BPS-18 600 units; Rs 21,996 700 units; Rs 26,460
BPS-19 880 units; Rs 37,594 1,000 units; Rs 42,720
BPS-20 1,100 units; Rs 46,992 1,100 units; Rs 46,992
BPS-22 1,300 units; Rs 55,536 1,300 units; Rs 55,536

The BPS-20 amount is listed without a separate category distinction in the judgment’s schedule. The schedule has no BPS-21 row, and no WAPDA amount is listed for BPS-22. These are schedule figures reproduced in the judgment, not a calculation of any employee’s net pay or current electricity bill.

Do officers still receive cash instead of free units?

The policy replaces the unit facility with fixed monetary amounts linked to the former allocation, while requiring employees to pay their electricity bills. The published schedule does not establish that an individual’s overall compensation or electricity cost will be the same as under the former arrangement; an employee’s actual bill depends on consumption and applicable charges.

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Dawn reported that BPS-18-to-22 officers collectively used 75 million units, at a cost of up to Rs 4–4.5 billion annually. That is a reported estimate, not a figure established by the court; the article does not state the estimate’s methodology.

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Why did the court reject the challenge?

The association argued that free units were part of officers’ appointment terms, that employees in BPS-1-to-16 continued to receive them, and that withdrawing the benefit from officers was unlawful, discriminatory, and unconstitutional. Those were the petitioners’ arguments.

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The court treated the electricity units as a service-linked privilege, not a core service right, statutory entitlement, or pensionable benefit. It found that the petitioners had identified no statutory rule making the units an enforceable right. In the court’s view, a competent authority could alter, monetize, or withdraw a non-statutory privilege for operational and financial reasons.

On the discrimination claim, the court treated BPS-17-and-above officers as a distinct cadre for this policy and rejected the challenge. The government’s counsel described the change as intended to streamline administration and address duplication, delayed recoveries, liquidity constraints, circular debt, and operational losses. Those were the government’s stated rationales summarized in the judgment, not independently measured effects.

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What is not established about the ruling’s current status?

The judgment is dated 16 February 2026. The available reporting and documents do not establish whether it was later appealed, stayed, or modified, nor do they verify how the schedule was applied to individual payrolls. Employees assessing their own pay or bill should consult current employer and payroll records rather than infer a personal net amount from the court’s schedule.

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