ISLAMABAD: The Supreme Court summoned Additional Director General Tariff, NEPRA, and secretary Ministry of Energy and Power Division today (Thursday) to assist with respect to the process applicable for the determination of uniform tariff.

A three-judge bench, headed by Chief Justice Umar Bandial, on Wednesday heard the K-Electric’s appeal against the Sindh High Court (SHC)’s judgment, wherein, the corrigendum dated 22-01-2020 related to tariff policy was quashed.

The short order, dictated in the court, said: “We would like to ascertain SRO575, which has given uniform tariff to industrial consumers of K-Electric, whether that has been settled by NEPRA or as contended by the K-Electric counsel it was done by the government.” “In order to assess the respondent (industrial consumers) arguments that withdrawal of the subsidy is done without the intervention of the NEPRA.”

The SHC on 28 September 2020 declared the corrigendum illegal, void, issued in excess of authority; hence, quashed. The K-Electric was asked to charge the tariff from its industrial consumers as per the left hand column (K-Electric Tariff of SRO 575(I)/2019 dated 22 May 2019 as determined vide determination dated 05 July 2018 in respect of variable “off-peak hours” charges, and right-hand column (uniform tariff) in respect of variable “peak hours” charges as long as subsidy for “peak hours” provided through SRO 12(I/2019 dated 01 January 2019.

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Haider Waheed, counsel for the industrial consumers, said only the NEPRA can amend the tariff and not the government. The government cannot withdraw subsidy given to the industrial consumers, earlier. He further submitted that K-Electric is not sending them bills in accordance with the SHC’s judgment.

Justice Ayesha Malik said that you (the consumers) enjoyed the benefit of subsidy, but when it was withdrawn your client challenged it before the High Court. The counsel replied that they have challenged the withdrawal of subsidy by the government. retrospectively, adding through corrigendum it was given the retrospective effect. The subsidy could not have been withdrawn without the determination by the NEPRA under Section 31 of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.

Advocate Abid S Zuberi, representing K-Electric, submitted that the impugned judgment in itself is contradictory as on the one hand SRO No 810(I) /2019 has been upheld, whereas the corrigendum dated 22 January 2020, which is a ministerial act that merely implements SRO No 810(I)/2019 has been set-aside.

The petitioner K-Electric further stated that the SHC’s directions are totally against the policy of the Ministry of Energy (Respondent No 1) to keep and maintain a uniform tariff across the country. “The impugned judgement is; therefore, against well settled principles of law and interferes in the policy domain of the government and has created an entirely new tariff that has never been approved/ determined by the NEPRA (Respondent No 2).”

The PML-N federal government in order to lower the cost of large scale industrial production with a view to achieve/ stimulate sustained economic growth issued SRO 395(I)/2016 under Section 31(4) of the NEPRA Act 1997 whereby, industrial consumers of electric power were granted a Rs3 per kWh subsidy, known as Industrial Support Package (ISPA), in their applicable electricity tariff including both peak and off-peak hours throughout Pakistan. It became effective from 01-01-2016.

Economic Coordination Committee of the PTI government decided to continue the subsidy; therefore, Ministry of Energy on 01.01.2019 issued SRO 12(I) of 2019. ISPA relief granted to industrial consumers vide the January 2016 SRO was continued at the same rate of Rs3/kWh, applicable on all consumer categories including during both peak and off-peak hours.

However, the government on 12-07-2019 decided to alter its policy regarding the ISPA subsidy and issued SRO 810(I)/2019 dated 12.07.2019, whereby the grant of ISPA at the rate of Rs3/kWh was limited to peak hours only. The subsidy in respect of off-peak hours and other categories of industrial consumers was withdrawn throughout Pakistan vide SRO 810(I)/2019.

Though Ministry of Energy issued SRO 810(I)/2019 whereby, paragraph 2 of the January 2019 SRO was substituted, it; however, did not immediately amend the Schedule of Tariff of K-Electric issued vide SRO No 575(I)/2019.

The petitioner continued to charge its Industrial Consumers as per the SRO No 575(I)/2019 till December 2019 with the view of charging the amount accrued during that period by the consumers in view of SRO 810(I)/2019.

After issuance of several letters by the petitioner, the Respondent No1 took cognisance of the matter and issued corrigendum dated 22 January 2020 during the same fiscal year, incorporating the changes made vide SRO 810(I)/2019 in SRO 575(I)/2019 by modifying the right-side column of off peak rates and other categories of industrial consumers.

The corrigendum merely reflected the amendments made by SRO 810(I)/2019 throughout Pakistan and was reflected in the bills issued by all DISCOS to their respective consumers and also upheld in the Impugned Judgement.

Copyright Business Recorder, 2022