ISLAMABAD: The Punjab government has formally approached the Council of Common Interests (CCI) against the unauthorised deduction of Rs7.769 billion from its share in the divisible pool by the Federal Adjuster, terming the move a clear violation of established procedures and prior CCI decisions.
According to Punjab’s submission, the deduction — authorised through an order issued on June 19, 2025 — was made without reconciliation between the Power Distribution Companies (Discos) and the Punjab Energy Department’s Reconciliation Cell, as required under the CCI’s May 29, 2014 decision and subsequent Standard Operating Procedures (SOPs) finalised on July 22, 2014.
Under the CCI’s 2014 framework, at-source deductions for provincial government electricity dues were to be limited to 25% of bill amounts, subject to mandatory reconciliation within 60 days. Further deductions were prohibited until reconciliation was completed.
Punjab’s Reconciliation Cell has maintained a structured mechanism since July 2014, coordinating with all Discos operating in the province. The Cell reported that Rs25.524 billion in reconciled deductions had already been executed from July 2014 to June 2025 based on signed statements.
The provincial government argued that the new Rs7.769 billion deduction for the period July 2014–March 2025 constitutes a duplicate charge and directly contradicts the CCI decision, given that 25% deductions for the same period had already been settled.
Punjab also highlighted that comprehensive reconciliations of dues were concluded up to June 2024, with a net payable amount of Rs14.958 billion mutually agreed upon in meetings held with Disco CEOs and the Power Planning and Monitoring Company (PPMC). No objections were raised by the Discos during these sessions.
Citing Article 157(3) of the Constitution, which allows federal-provincial energy disputes to be referred to the CCI, Punjab has requested the Council to direct the Federal Adjuster to withdraw the unauthorised deduction and ensure compliance with the 2014 SOPs to safeguard provincial financial rights and uphold intergovernmental harmony.
Story by Mushtaq Ghumman
