Collection of fuel adjustment charges in K-P declared illegal
PHC orders charges collected to be returned to customers
Terming FAC an “additional burden on consumers,” CJ Khan questioned the need to recover FAC if hydropower, furnace oil and diesel are collected to generate electricity and the price is fixed for per unit. PHOTO: PPI/FILE
PESHAWAR:
The Peshawar High Court (PHC) on Tuesday declared the collection of fuel adjustment charges (FAC) in monthly electricity bills from consumers of Khyber-Pakhtunkhwa illegal and ordered the amount recovered in bills to be returned.
A two-member bench comprising Chief Justice (CJ) Dost Muhammad Khan and Justice Nisar Hussain Khan issued the orders while hearing petitions filed by over 72 industrial units of the province.
Peshawar Electricity Supply Company (Pesco) lawyer Abdul Rauf Rohail informed the bench the Islamabad High Court and Sindh High Court had already upheld the levy. He added Pesco pays FAC to the federal government which has cost them Rs60 billion so far, but they remain unable to collect the levy from consumers.
Terming FAC an “additional burden on consumers,” CJ Khan questioned the need to recover FAC if hydropower, furnace oil and diesel are collected to generate electricity and the price is fixed for per unit.
Shomail Ahmad Bhutt, lawyer for the industrial units, informed the court that K-P produces electricity at a cost of Rs1.3 but the federal government sells it at the cost of Rs14 which is “an injustice”.
He further informed the court according to a National Electric Power Regulatory Authority (Nepra) report, Pesco’s line losses in K-P have reached 56.3%.
“The federal government has to give Rs110 billion annually to K-P in net profit for using electricity which is not being paid regularly,” the lawyer added.
Bhutt also said consumers in K-P are not using electricity generated from fuel and so charging them FAC is not fair.
After hearing the arguments, the court declared collecting FAC from K-P residents illegal and also ordered whatever charges have been collected so far from consumers be returned.
These petitioners have also challenged a Nepra order issued on Sept 19, 2011, in an identical matter.
Nepra had declared the levy of FAC/fuel price adjustment (FPA) legal, and in accordance with law and the Constitution.
The petitioners also questioned the legality of a law introduced in 2011 through which Nepra was empowered to levy FAC/FPA saying without the consent of the Council of Common Interest, such amendments could not be made to the law.
The PHC had accepted these petitions and since February 28, 2012 it has issued stay orders and stopped Pesco from collecting such charges in the monthly bills of K-P’s consumers.
The Peshawar High Court (PHC) on Tuesday declared the collection of fuel adjustment charges (FAC) in monthly electricity bills from consumers of Khyber-Pakhtunkhwa illegal and ordered the amount recovered in bills to be returned.
A two-member bench comprising Chief Justice (CJ) Dost Muhammad Khan and Justice Nisar Hussain Khan issued the orders while hearing petitions filed by over 72 industrial units of the province.
Peshawar Electricity Supply Company (Pesco) lawyer Abdul Rauf Rohail informed the bench the Islamabad High Court and Sindh High Court had already upheld the levy. He added Pesco pays FAC to the federal government which has cost them Rs60 billion so far, but they remain unable to collect the levy from consumers.
Terming FAC an “additional burden on consumers,” CJ Khan questioned the need to recover FAC if hydropower, furnace oil and diesel are collected to generate electricity and the price is fixed for per unit.
Shomail Ahmad Bhutt, lawyer for the industrial units, informed the court that K-P produces electricity at a cost of Rs1.3 but the federal government sells it at the cost of Rs14 which is “an injustice”.
He further informed the court according to a National Electric Power Regulatory Authority (Nepra) report, Pesco’s line losses in K-P have reached 56.3%.
“The federal government has to give Rs110 billion annually to K-P in net profit for using electricity which is not being paid regularly,” the lawyer added.
Bhutt also said consumers in K-P are not using electricity generated from fuel and so charging them FAC is not fair.
After hearing the arguments, the court declared collecting FAC from K-P residents illegal and also ordered whatever charges have been collected so far from consumers be returned.
These petitioners have also challenged a Nepra order issued on Sept 19, 2011, in an identical matter.
Nepra had declared the levy of FAC/fuel price adjustment (FPA) legal, and in accordance with law and the Constitution.
The petitioners also questioned the legality of a law introduced in 2011 through which Nepra was empowered to levy FAC/FPA saying without the consent of the Council of Common Interest, such amendments could not be made to the law.
The PHC had accepted these petitions and since February 28, 2012 it has issued stay orders and stopped Pesco from collecting such charges in the monthly bills of K-P’s consumers.