Bank collection charges by KE: Nepra seems least interested in pursuing suit

National Electric Power Regularity Authority (Nepra) - the custodian of consumers' interests' appears least bothered in pursuing a suit filed by K-Electric against its decision on bank collection charges in the Sindh High Court (SHC).
On March 13, 2015, NEPRA directed KE to "immediately stop charging of Rs.8/- as bank collection charges from its consumers being illegal, unlawful and unjustified. (ii). Workout and intimate the amount so far collected in duplication on account of bank collection charges @ Rs. 8/- from its consumers since 2006 for adjustment and refund to the consumers."
The authority in its decision had explained that the power utility is presently charging bank collection charges in duplication ie through tariff as cost of O&M which was Rs 2/- bill in multi-year tariff determination in the year 2002 and the same has been indexed through CPI indexation and has become Rs 6.23/ bill (applicable during FY 2013-14) and through electricity bills @ Rs Rs 8/ per bill month.
Later on November 10, 2015, the power company filed a suit No-2123/2015 against the decision in SHC and made the Nepra and Federation of Pakistan (through secretary ministry of water and power) respondents. Sources said the court held nearly a dozen of hearings over the suit but interestingly none of respondents attended even single hearing.
In the last hearing held on February 1, 2018, the court warned the respondents that the matter has been fixed for ex-party hearing on May, 15 2018.
The court's additional registrar (OS) in its decision, a copy of which available with Business Recorder stated: "Matter called. None present. Perusal of record reveals that after institution of suit the process was issued thereafter despite repeated direction process could not be issued for want of cost. In the instant matter defendant N0-1 was served and had filed written statement while defender N0-2 was not served for want of cost. Sindh the matter is regulated by injunction order as such matter is referred to court for non-prosecution for not getting the process issued upon defendant No-1
The sources familiar with the development said that if Nepra failed to peruse the matter before next May, KE will win the case that means over 2.2 million consumers of KE would be deprived of some Rs 4 billion under the head of bank collection charges they paid to the power company since 2006.
"The power utility has been collecting Rs.96 per year on account of bank charges from each of its 2.2 million consumers since October 2006. KE has so far collected some Rs 2.5 billion since it has levied bank charges from its consumers." they said.
Unlike K-Electric, the other utilities in Pakistan such as Sui Southern Gas Company (SSGC), Lahore Electric Supply Company (LESC), Pakistan Telecommunication Company Limited (PTCL), and Mobile Companies were not collecting bank charges from their consumers, they added.
The sources alleged that Nepra is willfully not pursuing the billion rupee matter as the authority is hand in glove with the power company.