Fuel charge adjustments in power bills illegal: LHC

LAHORE: Lahore High Court (LHC) judge Justice Ali Baqar Najafi Monday declared fuel charge adjustments (FCA) in electricity bills as illegal, and directed the government to give subsidy up to 500 units to the domestic consumers.

According to Jang report, the court pronounced the reserved verdict on 3,659 petitions of Advocate Azhar Siddique and others, challenging the inclusion of FCA in the power bills. In an 81-page detailed judgment, the judge also declared quarter tariff adjustment illegal, and ordered subsidy for domestic users consuming up to 500 units.

Justice Najafi said in his verdict that due to slapping of different surcharges, electricity prices would become unaffordable for common man, and the government authorities should make solid planning to save society from a looming financial death.

Justice Najafi also declared illegal conversion charges from industrial tariff to commercial. He also pronounced Section 3 of the Nepra Act unconstitutional. The court also issued a number of instructions to the National Electric Power Regulatory Authority (Nepra) in this regard. The judge ruled that domestic consumers should not be charged beyond their capacity.

The counsel for the petitioners had pleaded before the court that the government disregarded rules and regulations and illegally imposed FCA in bills. They had requested the court to declare illegal the collection of FCA and all other surcharges.

After hearing arguments of both sides, Justice Najafi had reserved his verdict on Oct 10, 2022. The court also directed the federal government to utilise alternative sources like renewable energy including nuclear, hydel, wind and solar to produce affordable electricity.

It ordered provision of electricity according to its demand. It also asked the federal government to create resources to purchase affordable power from other countries. The most expensive electricity in South Asia is being produced in Pakistan, the verdict noted. This has caused a decline in the country’s exports, it observed.

The court ordered Nepra to take action against the power companies for overcharging. The high court further stated in its ruling that the power tariff should not be changed without holding talks with consumers besides ensuring uninterrupted power supply.

In August 2022, the LHC Rawalpindi Circuit bench had quashed FCA from the electricity bills. The bench, while hearing a petition, moved against collection of fuel charge adjustments from the consumers in the electricity bills, had struck down the FCA. Justice Jawadul Hassan had directed Wapda and Nepra not to charge tax in the electricity bills of consumers.