The Lahore High Court on Monday set aside the levy of a fuel adjustment surcharge on electricity consumers using up to 350 units per month.
The court referred the case of consumers using over 350 units per month to the National Electric Power Regulatory Authority (Nepra) with a direction to decide the matter within a month.
Over a hundred petitions filed by industrial units and domestic consumers had challenged the surcharge. The petitioners submitted that they were already paying various taxes in their bills and the fuel adjustment surcharge was an added burden that should be declared illegal.
The court had earlier stayed the recovery of the surcharge from consumers of up to 350 units.
The government defended the levy of the fuel adjustment surcharge, arguing that it was not a tax but was included in the cost of generating the electricity. It also pointed out that it was already subsiding the cost of electricity to the tune of Rs300 million.
Published in The Express Tribune, January 29th, 2013.