Relief withdrawn: Court allows collection of fuel price adjustment

Orders distribution companies to stop power theft, action against guilty officials.

ISLAMABAD:

A two-judge bench of the Islamabad High Court (IHC) on Thursday set aside a single bench order against the collection of fuel price adjustment (FPA) from power consumers. The court also directed the power distribution companies to curb electricity pilferage and take action against corrupt officials.

The bench comprising Chief Justice Anwar Khan Kasi and Justice Noorul Haq Qureshi accepted pleas of power distribution companies (DISCOs) against the order issued by the IHC judge Shaukat Aziz Siddiqui last year.



In its 35-page judgement, the two-judge bench observed that the single bench order was not correct as some important aspects were not taken into consideration. The court directed the DISCOs to adopt measures for the prevention of power theft and to take action against officials involved in the offence.

In October 2012, Justice Siddiqui had declared the collection of FPA from electricity consumers unconstitutional in response to a petition filed by 700 industrial and residential consumers.

Power distribution companies and the National Electronic Power Regulatory Authority (Nepra) had challenged the order.

Pleading the petition before the two judges, Islamabad Electricity Supply Company counsel Khaliquz Zaman had argued that FPA had been part of the power tariff and Nepra was authorised to charge it.

He had stated that Nepra could charge FPA under section 31 of Nepra rules. The single bench could not understand their point, he maintained, requesting the court to set aside the previous judgment.



Justice Siddiqui in his order had declared the collection of FPA illegal and observed that the scope of FPA could not be expanded and had to be confined to collecting variations in the price of fuel. The judge had also observed that consumers could not be left at the mercy of executive bodies and it was the duty of the courts to keep a check on them.

In 2011, Nepra had allowed distribution companies of Islamabad, Lahore, Faisalabad, Hyderabad, Gujranwala, Multan, Peshawar, Quetta and Sukkur to charge FPA in power bills. The move was challenged by consumers who had stated that FPA was unconstitutional and against articles 4 and 25 and rights protected by the Constitution.

Barrister Abu Bakar Sehrai had argued that FPA was also a violation of Section 31 of the Regulation, Generation, Transmission and Distribution Act 1997 and the Nepra Tariff Standards and Procedure Rules, 1997.

Published in The Express Tribune, June 28^th, 2013.