ISLAMABAD - The Supreme Court on Friday questioned how without inspecting machinery and visiting the sites of Rental Power Plants tariff was determined and why was feasibility study not conducted to foresee that oil shortage might play havoc in continuation of electricity supply. A two-meber bench comprising Chief Justice Iftikhar Muhammad Chaudhry and Khilji Arif Hussain was hearing suo moto, clubbed with identical petitions, alleging corruption in awarding the RPPs contracts. The bench observed that out of 19 RPPs only four plants were operational, which were generating 112.41MW electricity, adding that national grid system was receiving less than the pledged supply from RPPs though billion of rupees have been paid to them. The bench asked Khawaja Tariq Rahim, counsel for Ministry of Water and Power and Pepco, under what policy the RPPs contracts were awarded, while inquired from National Electric Power Regulatory Authority (Nepra) counsel Najam-ul-Hassan Kazmi to explain how the reference tariff was determined without examining the site and RPPs equipment. Kazmi replied that for reference tariff it was not necessary to physically inspect the machinery and visit the site, adding it could be determined on the basis of the documents that provide full description of the projects. The bench repeated that no policy was prepared for the rental power plants. Justice Khilji inquired that had anyone calculated how much money would be paid for RPPs as rent in five years or prepared feasibility report? He further asked whether the money would be paid to the companies in proportionate the electricity they would produce. Khawaja Tariq Rahim said under rule 60(f) of Business of Rules power generation and lying transmission lines were presented to the federal cabinet, adding since 2006 they have been forwarding the summaries of RPPs to the Economic Coordination Committee and the cabinet. He argued that the ECC and the federal cabinet had allowed mobilization of advance increase from 7 per cent to 14 per cent. The Chief Justice said that the cabinet was given briefing that there was shortage of electricity, but policy was submitted. The federal minister and the secretary of Water and Power must have released that how without policy electricity would be obtained from RPPs, the CJP said. Justice Khilji questioned from Pepcos counsel, whether the companies, which failed to produce electricity, as the government does not provide fuel to them would be imposed penalty? Kh Tariq acknowledged that 100 per cent due diligence was not taken in awarding Bikki, Sharkpur and other projects. Lauding the Gulf Power Plant, he said only the Gulf RPP is producing electricity in accordance with the contract - 62MW, while Karkey-I generating 151MW against its total capacity of 231MW. The court noticed that according the documents, provided to the court, Reshma Power Plant is not operating legally, as it was not awarded after the negotiations. The case hearing was adjourned till November 14.