Utility bills: Centre, Sindh ready to devise mechanism for payment

Federal Government and Sindh Government are said to be ready to devise a joint mechanism to stagger payment of due utility bills aimed at helping consumers hit by lockdown due to the outbreak of Covid-19.

Well informed sources in provincial government told Business Recorder on Monday that opinion of Law Department will be sought on Ordinance meant to waive off those with usage up to 250 units completely and exemption of 75 per cent amount to consumers using up to 350 units.

On April 9, 2020, as the news appeared in media, Power Division came into action and issued a press release late night saying that bills for electricity and gas supplied by federal entities are in the federal domain and provincial government cannot legislate upon such subjects.

The sources said, Sindh Chief Minister Murad Ali Shah wrote a letter to the federal government in March 2020, requesting the federal government to extend relief to the people of Sindh.

The sources maintained that on April 10, 2020, Secretary Power Division, Irfan Ali also wrote a letter to Chief Secretary Sindh, Mumtaz Shah and conveyed federal government's concern on the purported move of the provincial government.

"We have come to know through electronic media reports that an Ordinance has been drafted by the Government of Sindh in which all utility providers falling within territorial jurisdiction of the provincial government have been directed to provide concessions in the utility bills to all domestic, residential and commercial consumers. The media report states that the Government of Sindh "through this Ordinance purports to waive off the bills for consumers up to 250 units completely, and consumers up to 350 units have been exempted from payment of 75 per cent of their bills," the sources quoted Secretary Power as saying in the letter. Power Division, sources said, argued that the subject of electricity is provided as Entry 4 of Part II of the Federal Legislative List and any legislation on this subject falls within the exclusive domain of Parliament. Any legislation on this subject by the provincial government would be ultra-vires of the Constitution and needs to be immediately rectified, as it is a federal subject.

The Power Division further stated that the federal government has already launched a major relief package for providing help and support to the people affected by Covid-19. This includes installment facilities for three months for consumers using up to 300 units of electricity.

"Any suggestion that the Government of Sindh may have for provision of relief to consumers needs to be forwarded to the federal government for consultation at the appropriate forum," the sources quoted Secretary Power as saying his letter. Talking to Business Recorder, Minister for Energy Sindh, Imtiaz Shaikh said that Sindh Chief Minister had announced that bills of one month should be suspended and be paid in installments.

"We know this subject is the domain of the federal government. We have advised and now it's up to them as to how they treat this proposal," he added.

In reply to a question, he said that the provincial government prepared law for this purpose but at the same the provincial government knows this is a federal subject.

"When there is no business activity in the province, from where the people will pay utility bills. Federal Government has barred the people to do any business due to lockdown," he continued.

"The Ordinance will be submitted to the provincial cabinet after taking advice from the Law Department and also recommend the federal government to provide relief to the people," he added.