THE Federal Government has replaced free electricity units for power sector officers in grades 17 to 21 with a fixed monthly cash allowance calculated at Rs. 30 per unit. According to a notification of the Power Division, instead of receiving free electricity, eligible officers will have cash added directly to their salaries based on their previous unit entitlements. The monetization of free electricity ranges between Rs. 15,858 for a grade-17 officer to Rs. 55,536 per month for a grade-21 officer.
Way back in December 2023, the then interim Government decided to end free electricity units for officers of WAPDA, DISCOs, and GENCOs but it could not be implemented in the face of legal challenges. The relevant constitutional forums upheld the move of the Government declaring free power as a service privilege rather than a permanent legal right. It has been claimed that the decision has been motivated by a desire to lower heavy state subsidies and easing the fiscal strain of the energy sector. However, it makes hardly any difference for the Government as well as officers as the former will still have to pay for the free electricity units and the latter would have substantial increase in the carry home salaries. The move will have a beneficial effect only if there is a strong mechanism to ensure the misuse of the authority and dispense with the free electricity units for employees as well because the facility is widely misused. There are legitimate complaints that the scheme of monetization of transport facility for senior officials is openly being misused as most of them continue to use official cars and vehicles for their personal and family purposes. There should be a verifiable mechanism to ensure that monetization of free electricity does not face the same fate.
