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LHC Upholds End of Free Electricity Units | TaxHelpLine

LHC Upholds End of Free Electricity Units

18-Apr-2026
LHC Upholds End of Free Electricity Units

The Lahore High Court has upheld the federal government’s policy decision to discontinue the provision of free electricity units for Grade-17 officers of WAPDA and associated power distribution companies, affirming the legality of the measure.

In a detailed 14-page judgment authored by Malik Javed Iqbal Wain, the court dismissed petitions filed by the GEPCO Engineers and Officers Association, which had challenged the withdrawal of the facility.

The court held that the provision of free electricity units constituted a service-related benefit rather than a vested legal or fundamental right, and as such, remained subject to modification or withdrawal through policy determinations by the government.

It was further observed that the petitioners failed to establish that the benefit was supported by any statutory provision. The court emphasised that the government retains discretion in financial and administrative decision-making, particularly in the context of addressing challenges such as circular debt in the power sector.

The judgment reiterated the principle that judicial intervention in policy matters is limited and permissible only where such decisions are found to be unconstitutional or contrary to law.

The petitioners had contended that a 2023 notification replaced the free electricity facility with a fixed monetary allowance and argued that the benefit formed part of their employment terms. They further alleged discriminatory treatment on the basis that the facility continued for employees in Grades 1 to 16.

However, the court found no evidence of illegality or violation of constitutional provisions, noting that the benefit had not been entirely withdrawn but rather monetised and incorporated into salary structures.

Following the ruling, the federal government endorsed the decision. Awais Leghari, Minister for Power Division, stated that the judgment reflects a broader policy shift within the power sector and is consistent with ongoing reform initiatives under the current administration.

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