The Supreme Court on Monday overturned the judgment passed by the Lahore High Court (LHC) which had declared the collection of fuel charge adjustment (FCA) applied to the monthly bills of electricity consumers illegal.
In its order, the country’s top court said that the LHC verdict was impractical both constitutionally and legally and noted that the Appellate Tribunal National Electric Power Regulatory Authority (Nepra) was the appropriate forum to decide the matter.
The three-member bench, headed by Chief Justice Qazi Faez Isa, asked the petitioners to file an appeal before the Nepra Appellate Tribunal within 10 days, which should fix matter for hearing and make a decision in 10 days.
Earlier this month, the Supreme Court had started hearing the appeal filed by the power distribution companies (Discos) against the LHC single-member bench’s decision to declare the FCA illegal after a number of petitioners moved the provincial top court.
WHAT HAD HAPPENED AT LHC?
In February, the single-member bench comprising Justice Ali Baqir Najafi had not only listed the FCA as illegal but also directed the federal government to provide subsidy to the domestic electricity consumers consuming up to 500 units.
The petitions were jointly filed by Azhar Siddique – a Lahore-based lawyer who has remained part of the PTI legal team – and others.
Meanwhile, the LHC judgment also touched the subject of energy mix by instructing the government to use alternate cheap sources for power generation.
The judge asked Nepra not to charge exorbitant tariffs beyond the paying capacity of domestic consumers and fix the responsibility of overcharging on the basis of line losses and less efficient power plants. He added that the financial burden would also be shared by the companies under a rational proportion.
