Essential services law extended to power firms – Pakistan

ISLAMABAD: The government has extended the application of Pakistan Essential Services Act to all generation, transmission, distribution and sale of electricity for another six months to Jan 25, 2025 to avoid interruption in power supply because of possible union activities amid ongoing restructuring exercise in the state-owned entities (SOEs).

“The federal government is of the opinion that employment under all Pakistan Power Sector Entities including Distribution Companies (Discos), Generation Companies (Gencos) and National Transmission and Dispatch Company (NTDC), Ministry of Energy Power Division of Pakistan is essential in order to ensure uninterrupted operation of the organisation,” said a notification issued by the Ministry of Interior and forwarded to all power companies by the Power Division.

Therefore, while using powers under sub-section (1) of Section 3 of the Pakistan Essential Services (Maintenance) Act-1952 (Pesma), the federal government declared all the above-mentioned power companies “as essential services for a period of six (06) months w.e.f 26-07-2024”, it added.

The caretaker government had applied the Act to all power companies till July. Under the law, SOEs could be described as essential services for six months.

Law applies to Gencos, Discos, NTDC; officers will have powers to order any employee to avoid going to another area without prior approval

During the intervening period, workers had resorted to protests against the restructuring that they feared could negatively impact their jobs.

The decision was taken by then federal cabinet in the second week of January on a summary moved by the Ministry of Interior on the request of Power Division.

Under the decision, all these companies — Discos, Gencos and NTDC — involved in the business of generation, transmission and distribution had been declared as essential services under section 3 of the Pesma “to restrict all kind of union activities for [a] period of six (06) months”, extendable to another six months.

The government has already decided to exclude the option of offering power companies to the provinces and is working on divesting of two Discos — one loss making and one profitable.

The Ministry of Interior noted that currently Discos had launched a campaign against electricity theft and non-payment of dues by defaulters with the help of respective provinces. The monitoring of this campaign was being done on a daily basis. It is high time to check the activities of these unions, otherwise, this will bear heavy toll on the performance of Discos as well as the finances of federation.

Ministry of Energy Power Division said in the 2023-24 financial year, it was apprehended that Discos may make a loss of Rs589 billion, including under the head of recovery and the losses beyond the threshold set by the National Electric Power Regulatory Authority.

The Pesma deals with the maintenance of certain essential services. As per section 3 of the Act, the federal government may, by notification in the official gazette, declare any employment or class of employment for a period of six months extendable to further periods not exceeding six months.

The government is of the opinion that such employment or class of employment is essential service for the purpose of “securing the defence of the security of Pakistan or any part thereof and maintenance of such supplies or services as relates to any matter with regard to which Central Legislature power to make laws and are essential to the life of the community”.

Under the law, the authorised officers of the government have the powers to order any or all the employees to remain in specific areas and avoid going into another area without prior approval.

A magistrate has the powers under the law to try such offence summarily in accordance with the procedure laid down for summary trial in case an employee or group of employees disobeys any lawful order given in the course of such employment, or attempts to persuade any person to disobey any such order or refuse to work or to continue to work.

Published in Dawn, September 16th, 2024