Essential Services Law Extended for Power Sector to Prevent Disruptions Amid Restructuring

power-transmission

ISLAMABAD: The government has extended the application of the Pakistan Essential Services Act to cover all entities involved in the generation, transmission, distribution, and sale of electricity until January 25, 2025. This extension aims to prevent disruptions in power supply due to potential union activities during the ongoing restructuring of state-owned enterprises (SOEs).

A notification issued by the Ministry of Interior, at the request of the Power Division, states that the federal government considers employment in Pakistan’s power sector—covering Distribution Companies (Discos), Generation Companies (Gencos), and the National Transmission and Dispatch Company (NTDC)—as essential to ensuring uninterrupted operations.

The move, made under Section 3 of the Pakistan Essential Services (Maintenance) Act-1952 (Pesma), prohibits union activities within the power sector for six months, with the possibility of extension. This decision comes as the government continues to combat electricity theft and non-payment, with Discos projected to lose Rs589 billion in the 2023-24 fiscal year. The extension of Pesma powers is part of efforts to stabilize the sector while restructuring continues.

Story by Khaleeq Kiani

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