LAHORE: The Lahore High Court directed the government to provide maximum subsidy to the domestic consumers of 500 units per month and not demand extra ordinary taxes having no nexus with the consumption of energy which may be recovered through other modes.
The court passed these directions in about three thousand of petitions filed by domestic, industrial and commercial consumers against different charges collected through the electricity bills and declared that the Fuel Price Adjustment, Quarter Tariff Adjustment, Change of status of tariff from industrial to commercial by the Nepra as illegal and without lawful authority. The court had reserved its judgment on the petitions on October 10, 2022. The court directed the government to explore the solar, hydel, nuclear and wind sources of producing electricity or arrange for cheap purchase of sources of electricity from other countries.
The court also asked the government to explore the cheap modes of producing electricity and evolve mechanisms for its quick availability.
The court asked the government to ensure the smooth supply of electricity based on demand and not unilaterally change the type of tariff from industrial to commercial without hearing such consumers.
The court also directed the Nepra not to charge any exorbitant tariff beyond the paying capacity of the domestic consumers. The court directed the Nepra to inform the consumers about the charges on monthly basis and the fuel price adjustment shall not go beyond 07 days and the Quarter Tariff Adjustment shall not go beyond the statutory period.
The court observed that imposition of various taxes which can be recovered otherwise, amounts to economic strangulation of the consumers. The court said the Nepra while deciding about the tariff must keep in mind that interaction between the consumer and the producer should not be excited by the fiduciary relationship for the simple reason that to earn huge profit the performance of the producing company must increase and not the price be increased.
Copyright Business Recorder, 2023
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