LAHORE - The Lahore High Court on Friday declared imposition of a string of surcharges on electricity bills as unconstitutional and illegal.
The court ordered the federal government to refund/adjust the amount it had collected through electricity bills under different surcharges.
A division bench, headed by Justice Syed Mansoor Ali Shah and Justice Aysha A Malik, declared imposing of Equalisation Surcharge, Debt Servicing Surcharge, Universal Obligation Fund Surcharge and Neelam Jhelum Surcharge unconstitutional and illegal.
It ordered National Electric Power Regulatory Authority (Nepra) to work out a repayment plan within three months period from the receipt of the order and submit report in the court.
Electricity supply companies have been burdening all sorts of consumers by various surcharges. A cement company filed an appeal against it which was disposed of along with 269 other petitions against undue electricity billing.
Advocates Khaleequz Zaman, Waqas Ahmad Meer and Wasee-ul Hasnain Naqvi assisted the bench as amicus curies.
As the proceedings commenced the counsel of the appellants, Muhammad Azhar Siddique, told the bench that section 31(5) of Nepra Act, 1997 was against the Constitution as the power of federal government to levy surcharge in view of section ibid was ultra vires and in negation of the Constitution because it had been added/amended through Finance Act, 2008.
They took the plea that provision of electricity was a fundamental right under Article 9 read with 14 and the “Annual Tariff” determination under the prevailing practice by including the line losses, theft, administrative losses etc. was violation of the aforesaid fundamental rights, as also exploitation in term of Article 3 of the Constitution. They said the government was ‘looting’ the general public in name of surcharges and had made it too difficult for the common man to get this essential commodity of modern life.
Moreover, despite the payment of heavy bills, electricity was not being provided to the masses which had badly affected the economy, said the counsel of the appellants. He said the ministry was doing nothing instead of increasing the burden over a common man. Lack of electricity has also brought a surge in prices of items of daily use, making the life of citizens miserable, he told the bench. He requested the bench to set aside all these surcharges and order the government to repay collected amount to the consumers.
During the arguments, the counsel of the federal government pleaded the bench to postpone the decision on the appeal. They argued that the federal government had prepared budget for the next fiscal year and it would make things too difficult for the government if the decision was not postponed. The bench heard the government counsels at length but turned down their request.
The bench directed the ministry to repay the amount it had collected from the public by chalking out a repayment plan within three months period and submit a report in the court. The court also struck down section 31 (5) of the Regulation, Transmission and Distribution of Electric Power Act, 1997 and the above said surcharges which were being collected under this law.