FPA surcharge: IHC gives relief to power users

Action taken on petition arguing the additional tariff is unconstitutional; NEPRA to reply next month.

ISLAMABAD:

The Islamabad High Court (IHC) on Wednesday provided a short breather to the power consumers restraining the electricity regulatory authority from collecting fuel price adjustment (FPA).

IHC Justice Riaz Ahmed Khan, acting on a public interest petition restrained the National Electric Power Regulatory Authority (Nepra) from collecting FPA.

The court directed Nepra’s representatives to file their reply by the first week of February and adjourned the hearing of the case.

The Lahore and Balochistan high courts have already restrained Nepra from collecting FPA until decisions on identical petitions in the respective courts are made.

According to a court official, the single bench granted temporary relief to the petitioner only, but other domestic consumers could also seek relief from the court separately on the basis of the facts provided.

Petitioner Advocate Inam Abubaker Sehri said that since it was a pro bono publico petition (public interest litigation), domestic consumers in IHC’s territorial jurisdiction could also claim the exemption from FPA in their bills.

“I approached the court for clarification of the court orders (if it was passed till the extent of petitioner only) because my prayer was for all domestic consumers, which the court accepted and passed restraining orders,” he added.

He said the bills of current month would be generated inclusive of FPA, but on the basis of the restraining order, the bills could be revised by Islamabad Electric Supply Company (Iesco).

The petitioner told the court that Nepra collected Rs77 billion as FPA from consumers. He argued that FPA is unconstitutional and against articles 4 (the right of individuals to be dealt with in accordance with law) and 25 (equality of citizens) of the Constitution, as well as being in violation of Nepra’s own tariff rules.

He contended that Nepra is negating its own policy of giving relief of Rs14 billion to the general public on the bases of fuel prices for the fiscal year 2011-12 by imposing the additional FPA surcharge.

He pointed out that Nepra, through a notification of October 3, 2011, imposed Rs2.04/KWh additional FPA on electricity consumers on units consumed in July 2011, adding that consumers were already paying Rs4.35/KWh.

Advocate Mohammad Shafiq defended the FPA before the court, contending that Nepra could impose FPA or other related surcharge on consumers and the recent adjustment was also in accordance with its regulations.

Published in The Express Tribune, January 12^th, 2012.