LHC suspends power tariff increase

‘Nepra and Lesco unlawfully recovering fuel adjustment surcharge’.


Express November 22, 2011

LAHORE:


The Lahore High Court suspended a notification of the National Electric Power Regulatory Authority (Nepra) on Monday pertaining to increase of Rs1.03 per unit in electricity tariff for industrial consumers for September.


Issuing the stay order, the court restrained the power regulator from recovering fuel adjustment surcharge or disconnecting electricity connections for non-payment of bills by the next date of hearing.

Justice Muhammad Khalid Mehmood Khan passed the order on 37 identical petitions filed by different industrial units.

The petitioners have made Water and Power Development Authority (Wapda), Nepra, Ministry of Petroleum and Natural Resources, Lahore Electric Supply Company (Lesco), federal and provincial governments as respondents in the petition.

The petitioners submitted that acting retrospectively, Nepra and Lesco are unlawfully recovering fuel adjustment surcharge for the previous month, which is now past and closed transaction between the consumers and power distribution companies.

They said the notification issued by the respondents imposed huge surcharge in their bills under an unlawfully added order in Nepra Act 1997. They said the order was added to the Act through an amendment for imposing taxes and surcharges for past months which was not permitted under the law.

The judge after hearing arguments suspended the notification till further orders and sought reply from the respondents. A couple of months ago, the same court had also issued a stay order for a 20% increase in fuel adjustment charges.

Published in The Express Tribune, November 22nd, 2011. 

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