Charging customers: PHC asked to declare four power surcharges as illegal
Court told the section imposing the charge was added unlawfully.
PESHAWAR:
The Peshawar High Court was approached on Tuesday against the collection of four different types of surcharges from industrial and domestic power consumers of the province in their monthly electricity bills.
The petition was filed by around 528 users of the Pakistan Textile Mills Association, CNG filling stations and other domestic users through their counsel, Shumail Ahmad Butt. The petitioners named the National Electric Power Regularity Authority (Nepra), Peshawar Electric Supply Company (Pesco) and the Central Power Purchasing Agency (CPPA) as respondents.
The petitioners pointed out that industrial units and domestic users were currently paying four types of surcharges in their electricity bills, including charges for the Neelam-Jhelum hydropower plant, debt, fix (repairs) and equalisation. They said these surcharges were implemented under Section 31 (5) of the NEPRA Act.
Section 31 (5) states, “Each distribution company shall pay the federal government such surcharge as the federal government, from time to time, may notify in respect of each unit of electric power sold to consumers and any amount paid under this subsection shall be considered as a cost incurred by the distribution company to be included in the tariff determined by the authority.”
However, the petition claims the section was included in the act through the Finance Bill 2008, which was declared illegal. “The law states distribution companies cannot impose surcharges on consumers and the matter needs approval from the Council of Common Interest (CCI).”
However, Nepra has said these surcharges were imposed on consumers to repay loans. But users were never informed of the charges.
The petition filed by 528 users stated the government contended that equalisation surcharges were imposed for line losses, but it was illegal to take the same from those consumers regularly paying their monthly bills.
“No one knows where the surcharges are spent, but it seems like a tax charged only by the K-P government,” the petition said. “The law is clear on the issue.”
It further stated the provincial government did not take the required approval from the Parliament to impose the four surcharges.
The Lahore High Court suspended these surcharges in Punjab on December 8, 2012 after declaring them illegal.
The court was requested to declare the collection of these types of surcharges from consumers in K-P as illegal and unconstitutional. The court will take up the matter on Wednesday (today).
Published in The Express Tribune, December 24th, 2014.
The Peshawar High Court was approached on Tuesday against the collection of four different types of surcharges from industrial and domestic power consumers of the province in their monthly electricity bills.
The petition was filed by around 528 users of the Pakistan Textile Mills Association, CNG filling stations and other domestic users through their counsel, Shumail Ahmad Butt. The petitioners named the National Electric Power Regularity Authority (Nepra), Peshawar Electric Supply Company (Pesco) and the Central Power Purchasing Agency (CPPA) as respondents.
The petitioners pointed out that industrial units and domestic users were currently paying four types of surcharges in their electricity bills, including charges for the Neelam-Jhelum hydropower plant, debt, fix (repairs) and equalisation. They said these surcharges were implemented under Section 31 (5) of the NEPRA Act.
Section 31 (5) states, “Each distribution company shall pay the federal government such surcharge as the federal government, from time to time, may notify in respect of each unit of electric power sold to consumers and any amount paid under this subsection shall be considered as a cost incurred by the distribution company to be included in the tariff determined by the authority.”
However, the petition claims the section was included in the act through the Finance Bill 2008, which was declared illegal. “The law states distribution companies cannot impose surcharges on consumers and the matter needs approval from the Council of Common Interest (CCI).”
However, Nepra has said these surcharges were imposed on consumers to repay loans. But users were never informed of the charges.
The petition filed by 528 users stated the government contended that equalisation surcharges were imposed for line losses, but it was illegal to take the same from those consumers regularly paying their monthly bills.
“No one knows where the surcharges are spent, but it seems like a tax charged only by the K-P government,” the petition said. “The law is clear on the issue.”
It further stated the provincial government did not take the required approval from the Parliament to impose the four surcharges.
The Lahore High Court suspended these surcharges in Punjab on December 8, 2012 after declaring them illegal.
The court was requested to declare the collection of these types of surcharges from consumers in K-P as illegal and unconstitutional. The court will take up the matter on Wednesday (today).
Published in The Express Tribune, December 24th, 2014.