Attorney General Muneer A Malik told the court that had the government considered Nepra’s recommendations submitted on August 5, it would have been akin to dropping a nuclear bomb upon the hapless people. PHOTO: AFP/FILE
The Supreme Court has given the government until Friday to revisit the notification of a massive increase in electricity tariff.
Minister for Water and Power Khawaja Muhammad Asif assured a three-judge bench – headed by Chief Justice Iftikhar Chaudhry – that it would comply with the top court’s directives.
On Tuesday, the court took notice of the government’s decision to increase power tariff for domestic consumers by nearly 30%, asking for a rationale for the unprecedented hike.
“The government should take suitable decisions that do not involve punishing the public for the wrongdoings of a few influential individuals who steal electricity,” said Justice Chaudhry, while calling for a strict investigation into power theft.
Calling the apex court a ‘helping hand’ for the government, the chief justice said the government should fulfill its constitutional role by ensuring the general public does not suffer under a democratically-elected government.
He asked the water and power minister to withdraw the notification of tariff increase, saying that the apex court’s intervention in the matter would not have a good impression. “Don’t pitch us in the eye of the public as having forced the government to revisit prices,” he said.
The court observed that the notification was not issued by Nepra (National Electric Power Regulatory Authority) and neither was the tariff increase recommended by the power regulator. Justice Chaudhry remarked that the government apparently had no right to change power tariffs as this was the sole responsibility of the statutory body.
Attorney General Muneer A Malik told the court that had the government considered Nepra’s recommendations submitted on August 5, it would have been akin to dropping a nuclear bomb upon the hapless people.
Nepra chief Khawaja Naeem admitted that the regulatory body had recommended nine different tariffs but the increase announced by the government was lower than that. The attorney general stated that the different tariffs idea was horrific according to his understating.
Justice Jawwad S Khawaja said the court has nothing to do with policymaking procedures and it was up to the government to determine increase in tariff. However, the court is concerned with ensuring that the relevant procedure was followed while making decisions and that a rationale was adopted for policy decisions.
Later the bench adjourned the hearing till Friday after the water and power minister assured the court that the tariff increase would be revisited. By that time, the government would have to submit a written statement regarding a revision in the tariff increase.
The bench also directed the government to submit a copy of the September 30 notification, while Nepra was asked to submit a copy of its August 5 recommendation in tariff increase.
Energy policy
The court also noted that the existing energy policy was contrary to the Regulation of Generation, Transmission and Distribution of Electric Power ACT, 1997 that discourages monopolistic and oligopolistic approaches.
Justice Gulzar Ahmad said each distribution company has its monopoly in a specific region and all nine distributors and Karachi Electric Supply Company are the best example of oligopolistic model with consumers having no other option but to rely on their tariffs.
The Nepra chief told the court that the authority was considering including the private sector in the energy sector to ensure competition in the market.
Published in The Express Tribune, October 3rd, 2013.
COMMENTS (6)
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@Ahmad Nasser:
The biggest subsidies are paid for agricultural sector and to no one's surprise thousands of acres of Raiwand palace (Residence of "Shareef" brothers) is declared agricultural land. I wouldnt pay the bill for the billionaires (Of course stolen money of our own taxes made them billionaire)
Let the court judge wether the hike is even legal or not, mean while please keep your mouth close!
@Nadir: these things happen during ppp govt. time, nobody say so in those times
May be the prices are high, but government has other measures to protect its citizens from economical turmoil, power theft and line losses are not the problem of common man!!!
http://pakistanpostman.blogspot.com/2013/10/increasing-prices-no-tax-relief-and.html
It is unfortunate that the court is acting like it is running for elections. The judges have no clue about the issue. The government paid a subsidy of Rs. 462 billion (i.e. billion, not million) in subsidy for the fiscal year 2011-12. That is about one quarter of what the government got in revenues. Where would that money come from? The money that should be spent on law and order, education, and health care, is being paid to all consumers in subsidy, rich and poor.
Does the CJ know what he is talking about. We are selling electricity below the cost of production, even accounting for electricity theft. How is that sustainable? Why use the money of those who pay for electricity to finance the consumption of those who do not.