LHC rules courts cannot act as regulators in economic policy matters

Court dismisses petition challenging capacity charges, says electricity tariff matters fall under policymakers

LAHORE:

The Lahore High Court (LHC) has ruled that courts cannot act as regulators, auditors, or economic experts in matters involving economic and regulatory policy, while dismissing a constitutional petition challenging capacity charges and electricity tariffs.

In a detailed six-page judgment on a petition, Justice Ahmad Nadeem Arshad held that the judiciary cannot function as an appellate forum for reviewing economic, financial, or regulatory policies merely on the basis of a citizen’s disagreement.

The court observed that issues relating to capacity charges and electricity tariff structures fall within the domain of policymakers and relevant regulatory bodies, adding that energy-sector policymaking is the responsibility of the government and Parliament rather than the judiciary.

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Referring to the constitutional principle of separation of powers, the judgment emphasised that courts must exercise restraint in matters falling within the executive and legislative spheres. It further noted that the petitioner failed to establish any violation of fundamental rights.

The court also ruled that directing the recovery of payments made to Independent Power Producers does not fall within its constitutional jurisdiction. It reiterated that policymaking cannot be pursued through public interest litigation.

The petitioner had sought the striking down of capacity charges and electricity tariffs, along with a comprehensive review of the country’s power sector regulatory framework. However, the court dismissed the petition as non-maintainable.