Industrial consumers: SHC orders banks to accept power bills without ISPA charges

Sindh High Court (SHC) on Tuesday ordered banks to accept the electricity bills without ISPA charges and restrained K-Electric (KE) to disconnect the electric connections of industrial consumers till next date of hearing of case related to ISPA charges in electricity bills.

According to written order of SHC, counsel for the petitioners provided copies of the newly instituted petitions along with annexures to M/s Abid S Zuberi and Ayan Mustafa Memon appearing on behalf of respondent K-Electric and Durdana Tanveer learned DAG, who waived notice of the same.

Counsel for the KE attention of the court to the Notification bearing SRO No. 575 (1) / 2019 issued on May 22 , 2019 and stated that with regard to the industrial supply tariff as mentioned at page - 43 , the rates of uniform tariff at peak hours was fixed at Rs 15.84 and for off-peak hours at Rs 10.28.

Counsel also referred to another notification bearing SRO No. 810 (1/2019 dated 12th July , 2019) and submitted that for implementation of the said SRO in the presence of earlier SRO No 575 (1/2019) the respondent No 3 approached to the respondent No 1 by addressing letters dated Aug 28 , 2019 and Dec 16 , 2019 with regard to the corrected tariffs as set by the later SRO.

Counsel for the respondent further submitted that at the request of the K-Electric on 22.01.2020 Ministry of Energy/respondent No 1 issued Corrigendum wherein rates in off-peak hours were enhanced from Rs 10.28 to Rs 13.28 while rates for peak hours stayed the same (i.e. at the rate of Rs 15.84, since the federal government vide SRO No. 810 (L) 2019 chose to withdraw subsidy of Rs3/kwh for off-peak hours supplies.

Haider Waheed, counsel for petitioners contended that the enhancement of rates in off-peak hours through Corrigendum is contrary to NEPRA laws as well as cannot take effect retrospectively.

SHC observed that matter required detailed deliberations, therefore, as an interim measure, the petitioners are directed to furnish bank guarantees, post-dated cheques, ready for payment with regard to the retrospective amount of off -peak hours component within a period of ten (10) days time with the Nazir of this Court.

Court ordered that current electricity bills be paid by the petitioners within due date as per bills issued to the petitioners minus ISPA component , and to facilitate the same , all the banks are directed to accept the electricity bills without ISPA charges.

Till next date of hearing, subject to payment of bank guarantee(s)/post-dated cheque(s) of the ISPA component and payment of electricity charges by the petitioners, their electric connections shall not be disconnected, court ordered. Court issued notices to K-Electric and others and adjourned the hearing of case till April 30.