Fuel price re-adjustment: DISCOs told to pay back
IHC finds excessive FPA was charged.
ISLAMABAD:
The Islamabad High Court (IHC) on Wednesday directed electricity distribution companies (DISCO) to pay back money collected from consumers last summer under the Fuel Price Adjustment (FPA) head.
Justice Shaukat Aziz Siddiqi of the IHC observed in his decision that the executive could not be allowed to exploit electricity consumers and it was duty of regulatory bodies to protect consumer rights.
The decision came after a hearing on 700-plus petitions filed with the IHC challenging the increase in electricity charges against units already consumed and paid for. The petitioners, both residential and industrial consumers, had maintained before the court that billions of rupees were illegally collected under the FPA. The petitioners had called the collection of Rs77 billion for FPA unconstitutional and had prayed the court to nullify the exploitation.
Justice Siddiqui declared that the regularity authority is under statuary obligation to protect the interest of the common man.
The court observed in its order that the retroactive levy and demand of FPA has been declared unconstitutional. “FPA should remain within the variation of fuel prices… distribution companies are directed to issue amended bills and the excessive amount received so far should be adjusted in coming bills,” the court said.
In January this year, IHC Justice Riaz Ahmed Khan had restrained National Electric Power Regulatory Authority (Nepra) from charging FPA in a public interest petition.
Later, over 700 petitions challenging the FPA were filed. Petitioner’s counsel Barrister Abu Bakar Sehri maintained that Nepra had collected Rs77 billion FPA from consumers.
Published in The Express Tribune, October 25th, 2012.
The Islamabad High Court (IHC) on Wednesday directed electricity distribution companies (DISCO) to pay back money collected from consumers last summer under the Fuel Price Adjustment (FPA) head.
Justice Shaukat Aziz Siddiqi of the IHC observed in his decision that the executive could not be allowed to exploit electricity consumers and it was duty of regulatory bodies to protect consumer rights.
The decision came after a hearing on 700-plus petitions filed with the IHC challenging the increase in electricity charges against units already consumed and paid for. The petitioners, both residential and industrial consumers, had maintained before the court that billions of rupees were illegally collected under the FPA. The petitioners had called the collection of Rs77 billion for FPA unconstitutional and had prayed the court to nullify the exploitation.
Justice Siddiqui declared that the regularity authority is under statuary obligation to protect the interest of the common man.
The court observed in its order that the retroactive levy and demand of FPA has been declared unconstitutional. “FPA should remain within the variation of fuel prices… distribution companies are directed to issue amended bills and the excessive amount received so far should be adjusted in coming bills,” the court said.
In January this year, IHC Justice Riaz Ahmed Khan had restrained National Electric Power Regulatory Authority (Nepra) from charging FPA in a public interest petition.
Later, over 700 petitions challenging the FPA were filed. Petitioner’s counsel Barrister Abu Bakar Sehri maintained that Nepra had collected Rs77 billion FPA from consumers.
Published in The Express Tribune, October 25th, 2012.