ISLAMABAD: The government of Sindh has challenged the at-source deduction of electricity charges being contemplated by the Pakistan Electric Power Company as a violation of Article 160 of the Constitution.

The provincial government boycotted a meeting of stakeholders called by the federal chief adjustor last week to reconcile disputed amounts and work out payment schedules to reduce the chronic circular debt burden, which is creating cash flow problems for the entire oil, gas and power sector. The adjustor was appointed by the federal government. The Sindh government said it would not become party to the ‘unlawful’ proceedings.

Sources in Pepco said another meeting would be held later this week.

The Sindh administration has termed the federal chief adjustor ‘an unlawful forum’ and has conveyed to the federal government its decision to sue Hesco for ‘overcharging’ over Rs15 billion. Hesco and Pepco have electricity bill arrears of over Rs22 billion against the Sindh government.

In a letter to the finance ministry, the Sindh government contended that unless an independent arbitrator was appointed as decided by the National Assembly’s standing committee on water and power, it would not participate in any meeting on electricity bills.