Electricity surcharges: SC grants leave to appeal against LHC decision

10 Dec, 2015

The Supreme Court on Wednesday granted leave to appeal to examine constitutionality of all kind of surcharges being collected from consumers in electricity bills which the Lahore High Court Lahore (LHC) had declared unconstitutional. A three-member bench led by Justice Mian Saqib Nisar resumed the hearing of 109 civil petitions of the federation filed against the LHC Lahore judgement in the matter.
Challenging vires of Section 31 (5) of the Regulation of Generation Transmission and Distribution of Electric Power Act 1997 and surcharges included Equalisation Surcharge, Debt servicing surcharge, Universal Obligation Fund Surcharge and Neelum-Jhelum Surcharge, 269 identical petitioners urged the LHC to decide constitutionally and vires of the provision of the Act.
To which on May 29, 2015, a division bench of the LHC declared these surcharges levied from time to time since 2008 unconstitutional and issued directives to the federal government to refund or adjust the collected amount under the heads of these from the upcoming electricity bills. The LHC also asked the National Electric Power Regulatory Authority (Nepra) to work out a repayment plan within three months and disposed of the petitions Federation has challenged the LHC verdict in the Supreme Court to which the bench on Wednesday granted leave to appeal against the High Court decision and issued notices to the parties of the case.
Appearing on behalf of some petitioners, advocate Azhar Siddique contended that more than 100 billion rupees would be recovered from the electricity consumers pocket saying that since five months consumers are paying the surcharges. Siddique further said that Lahore High Court was not taking up petition regarding surcharge matter as the current case is under adjudication before the apex court. However, issuing notices to the parties of the case, the bench adjourned hearing of the matter till second week of February,2016.

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