Tariff increase notification: SC gives govt until Friday for review

Chief justice says public being punished for wrongdoings of a few.

ISLAMABAD:

The Supreme Court has given the government until Friday to revisit the notification of a massive increase in electricity tariff.

Minister for Water and Power Khawaja Muhammad Asif assured a three-judge bench – headed by Chief Justice Iftikhar Chaudhry – that it would comply with the top court’s directives.

On Tuesday, the court took notice of the government’s decision to increase power tariff for domestic consumers by nearly 30%, asking for a rationale for the unprecedented hike.

“The government should take suitable decisions that do not involve punishing the public for the wrongdoings of a few influential individuals who steal electricity,” said Justice Chaudhry, while calling for a strict investigation into power theft.

Calling the apex court a ‘helping hand’ for the government, the chief justice said the government should fulfill its constitutional role by ensuring the general public does not suffer under a democratically-elected government.



He asked the water and power minister to withdraw the notification of tariff increase, saying that the apex court’s intervention in the matter would not have a good impression. “Don’t pitch us in the eye of the public as having forced the government to revisit prices,” he said.

The court observed that the notification was not issued by Nepra (National Electric Power Regulatory Authority) and neither was the tariff increase recommended by the power regulator. Justice Chaudhry remarked that the government apparently had no right to change power tariffs as this was the sole responsibility of the statutory body.

Attorney General Muneer A Malik told the court that had the government considered Nepra’s recommendations submitted on August 5, it would have been akin to dropping a nuclear bomb upon the hapless people.

Nepra chief Khawaja Naeem admitted that the regulatory body had recommended nine different tariffs but the increase announced by the government was lower than that. The attorney general stated that the different tariffs idea was horrific according to his understating.

Justice Jawwad S Khawaja said the court has nothing to do with policymaking procedures and it was up to the government to determine increase in tariff. However, the court is concerned with ensuring that the relevant procedure was followed while making decisions and that a rationale was adopted for policy decisions.

Later the bench adjourned the hearing till Friday after the water and power minister assured the court that the tariff increase would be revisited. By that time, the government would have to submit a written statement regarding a revision in the tariff increase.

The bench also directed the government to submit a copy of the September 30 notification, while Nepra was asked to submit a copy of its August 5 recommendation in tariff increase.

Energy policy

The court also noted that the existing energy policy was contrary to the Regulation of Generation, Transmission and Distribution of Electric Power ACT, 1997 that discourages monopolistic and oligopolistic approaches.

Justice Gulzar Ahmad said each distribution company has its monopoly in a specific region and all nine distributors and Karachi Electric Supply Company are the best example of oligopolistic model with consumers having no other option but to rely on their tariffs.

The Nepra chief told the court that the authority was considering including the private sector in the energy sector to ensure competition in the market.

Published in The Express Tribune, October 3^rd, 2013.