ISLAMABAD, July 19: The Khyber Pakhtunkhwa (KP) government has formally opposed the federal government’s move to discontinue the collection of Electricity Duty (ED) through Distribution Companies (Discos), urging the Power Division to reconsider its decision in light of constitutional and legal frameworks.
In a letter responding to Power Minister Sardar Awais Khan Leghari’s June 30 communication, KP Chief Minister Ali Amin Gandapur expressed strong reservations over what he termed a unilateral and unconstitutional decision made without consulting the provinces or seeking approval from the Council of Common Interests (CCI).
Citing Article 157(2)(b) of the Constitution and provisions of the KP Finance Act, 1964, Gandapur asserted that provinces have the legal authority to levy and collect ED on electricity consumption. He stressed that Discos—PESCO, HAZECO, and TESCO in KP’s case—are obligated to recover ED as a separate billing item, making it a provincial debt and first charge on recoverable dues.
The chief minister further argued that provincial oversight under the NEPRA Act and protections under the SoE Act and Articles 268 and 279 of the Constitution reinforce KP’s right to collect ED. He warned that bypassing legal consultation processes undermines federalism and could escalate center-province tensions.
Gandapur called the Power Division’s decision legally void and emphasized that ED is a sector-specific levy that cannot be replaced by an alternate recovery mechanism.
The KP government is open to dialogue, provided constitutional protocols are followed. Sindh has already voiced similar concerns, with CM Murad Ali Shah criticizing the federal government for ignoring provincial prerogatives.
Currently, Discos collect approximately Rs 60 billion annually in ED for provinces. While Islamabad claims the move aims to ease consumer burdens, provinces argue it compromises their fiscal autonomy.
Power Minister Leghari has assured that all provincial responses will be submitted to the prime minister before any final decision is made.
Story by Mushtaq Ghumman
