Verdict on surcharges termed setback for industrialists, CNG stations

PESHAWAR: Industrialists and CNG station owners of Khyber Pakhtunkhwa on Sunday termed as a setback the Peshawar High Court (PHC) verdict declaring imposition of Neelum Jhelum, Financing and Tariff Rationalisation surcharges in electricity bills lawful.

The court on Friday declared the three surcharges as lawful and dismissed all the writ petitions of the All CNG Association and industrial units of the province.In a statement, All Pakistan CNG Association chairman Fazal Muqeem has said the high court decision was a setback to the commercial consumers of electricity.

The two-member bench comprising Justice Seth Waqar and Justice Irshad Qaiser dismissed all the writ petitions filed against the imposition of the three surcharges. It had earlier stayed the decision.     

During hearing of the case, the petitioners’ lawyers argued that the surcharges had been imposed by the federal government without the consent of the provincial government. They said it is violation of Article 157 of constitution.

The lawyers also argued that imposition of surcharges without approval from CCI was illegal as the federal government should have first sought the CCI’s approval under Article 154 of constitution.

They pointed out that these surcharges are of the nature of tax for which the federal government should also take permission from the parliament. They argued that Khyber Pakhtunkhwa was producing hydel-power while these surcharges could only be enforced in provinces that are not producing hydropower.

However, the Peshawar Electric Supply Company (Pesco) lawyer Abdur Rauf Rohaila defended the surcharges. He submitted that the mandate of Article 157 of Constitution has two parts and since the province has neither purchased bulk supply from the national grid for transmission and distribution within the province nor has constructed power houses and grid stations or built transmission lines for the use of power within the province, therefore, the surcharges have correctly been imposed.

Later, the stay order was vacated and the three surcharges will now be charged in the electricity bills of commercial consumers.The commercial consumers also have to pay the arrears of the surcharge as the high court had stayed the surcharges for more than a year in the province.