The Supreme Court on Tuesday granted leave to appeal in response to a petition of Peshawar Electricity Supply Company (Pesco) and suspended Peshawar High Court (PHC) verdict, which had declared Fuel Adjustment Charges (FAC) in the monthly electricity bills of Khyber Pakhtunkhwa illegal. Allowing Pesco to collect FAC from the province, a three-member bench of the Chief Justice Tassaduq Hussain Jillani also issued a notice to the Attorney General for Pakistan (AGP) in response to identical petitions in the matter.
On December 17, 2013, PHC ruled that FAC/Fuel Price Adjustment (FPA) levied by the National Electric Power Regulatory Authority (Nepra) on electricity bills in Khyber Pakhtunkhwa was unconstitutional and illegal. The PHC had also issued directives to Pesco to pay back the amount charged under the head of FAC to consumers. The counsel for Pesco contended before the apex court that Article 157 (2) of the Constitution is not applicable in the matter in hand, adding that the PHC failed to apprehend that the federal government has constructed all hydel power stations, laid transmission lines and distribution networks in Pakistan. He also pointed out that not a single province of the country purchases electricity in bulk from the national grid.
The counsel argued that Council of Common Interest (CCI) is the proper forum for any province to raise an issue, saying the CCI has been mandated under Article 161 (2) of the Constitution of Pakistan to address any grievance of a province. The counsel further said that as per the settled law, decisions of the CCI may not be impugned before the courts and prayed the court to set aside the verdict of the PHC in the instant matter on the grounds that the PHC findings were in excess of its jurisdiction. Pesco''s counsel also contended that charging of the FAC from electricity consumers was not violative to the Article 25 of the Constitution.
Pesco also submitted that provisions of the NEPRA Act and the tariff rules stipulate that the tariff, rates, charges and other terms and conditions for the supply of electric power services by generation, transmission and distribution companies shall be approved by the Nepra and notified by the federal government. It was also contended that fuel price adjustment mechanism is meant for recovery of cost of electricity generation, validated by the superior courts so it''s not extra burden being placed on consumers. Later, the hearing of matter was adjourned for an indefinite period.
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