TUESDAY OCTOBER 18: Wapda restrained from collecting four percent 'EQ surcharge'

LAHORE: The Lahore High Court on Monday restrained the Water and Power Development Authority (Wapda) from collecting 4 percent 'EQ Surcharge' from industrial units in Punjab, and directed Punjab Advocate-General to assist it in the matter. The court, suspending the impugned notification issued on May 6, 2011, directed Wapda to collect only two percent surcharge equally imposed on industrial units/factories all over the country.
The court, issuing this order in a petition filed by First Treet Manufacturing Modarba, also directed federal government to submit a detailed report about fuel supplies, including furnace oil and Sui gas to independent power producers (IPPs), and total production of IPPs, in response of the supplies.
The court observed, "It seems that industries in Punjab are being discriminated," and directed the Advocate General to apprise the court as to how the federal government could impose the impugned surcharge on electricity consumed in one province, excluding the other provinces. The petitioner, through counsel, submitted that the federal government has levied 2 percent 'EQ Surcharge' through a notification issued on March 15, 2011 on all industries/factories in country.
The counsel said after three months the ministry of water and power and Nepra issued another notification on May 6, 2011 in which further 2 percent 'EQ Surcharge' was imposed only on industries working in Punjab. He said the said act of the government was highly discriminatory against the industry of the province and now the factory owners in Punjab were paying 4 percent 'EQ surcharge to Wapda.
The counsel argued that the impugned surcharge had been levied by the federal government under Nepra Act 1997, which only empowers the government to impose tariff on the basis of determination made by Nepra. He said that neither any surcharge under the law could be determined by Nepra nor the same had been determined by it. The counsel requested that the levy of the surcharge on the consumption of electricity be set aside being ultra vires of the law and the constitution. He also prayed to the court to set aside both impugned notifications and restrain Wapda from collecting the 4 percent surcharge.