HYDERABAD: Almost all main electricity connections of the Cantonment Board Hyderabad (CBH) — a powerful federal entity — were cut off by the Hyderabad Electric Supply Company (Hesco), another strong federal utility, on Friday for recovery of dues to the tune of Rs878.5m.

The CBH, on the other hand, didn’t lag behind in rebutting Hesco’s claim and instead came up with its own claim of Rs830m property tax outstanding against Hesco’s transmission line poles and grid stations located in CBH-run municipal limits.

The snapped power connections pertained to the main CBH secretariat, official residence of the cantonment executive officer (CEO) Muzaffara Abbasi, Staff Colony, situated behind the CBH secretariat, staff and sweeper colonies near Quaid-i-Azam Plaza and water pumping stations.

Hesco’s CEO Muzaffar Abbasi didn’t attend the call.

Power utility’s spokesman Sadiq Kubar claimed that Rs878.5m were electricity liabilities. “Dues against just one of the street lights connection of CBH are pending payment for 125 months and there are around 39 connections against whom billing is being made,” said the spokesman. He said that for the last six months, the CBH had not been paying current bills.

Cantonment board locks horns with utility over property tax

The board’s staff left offices in the afternoon as there was no power supply and according to one employee, the generator had run short of fuel as well. Water supply facilities remained without electric supply and despite requests by the CBH management, Hesco did not offer any concession.

It is for the first time in recent past that Hesco and CBH are taking on each other for recovery of their revenue. If Hesco is taking a lot of flak from consumers for its strong arm tactics and inflated bills against consumers, the CBH remains in the limelight for the last several months as CBH’s residents and shop owners are questioning higher property tax’s rates of the board.

Some residents have moved court against the CBH. Board officials privately confided that tax rates were being applied in other boards’ limits. The CBH has its elected representatives from tax and non-tax paying areas who are members of the board.

The CBH claims Rs830m against Hesco; alleges billing on closed meters.

CBH secretary Faisal Jadoon said Hesco had indeed disconnected electricity connections on Friday for the recovery of the dues that otherwise needed reconciliation. “We are paying current monthly bills and the CBH offered Hesco to sit for reconciliation.” While Hesco insists for the recovery of Rs878.5m of power dues, the CBH secretary insisted that the power utility also owed an amount of Rs830m under ‘property tax’ to be recovered by the CBH. “They have their grid stations here and their transmission lines’ poles are located in our limits,” he said.

He claimed that besides the ministry of defence’s notification, there was an order of the apex court which empowered the CBH to recover property tax from Wapda/Hesco. “The matter is even otherwise sub judice since it involves reconciliation, but Hesco is not reviewing it. Our president also spoke to the Hesco’s CEO, but in vain,” he said. Jadoon asserted that Hesco was not only issuing inflated bills but units were being charged even on closed meters. “The Hesco management is not serious in resolving the issue,” he remarked.

The Hesco spokesman disagreed with the CBH’s claim of the recovery of Rs830m property tax. “A civil court matter is pending in court over the CBH’s claim on the property tax, but we didn’t get any claim over property tax from the board,” he said and added that Hesco had disconnected electricity connections of the Sui Southern Gas Company (SSGC), a federal body, for the recovery of Rs27.2m.

Published in Dawn, September 16th, 2023