SC annuls LHC verdict declaring fuel price adjustment illegal.

The Supreme Court of Pakistan Monday set aside the Lahore High Court (LHC) judgment wherein it had barred the federation from collecting the fuel price adjustment (FPA), and quarter tariff adjustment (QTA) in electricity bills.

A three-judgment bench, headed by Chief Justice of Pakistan Justice Qazi Faez Isa and comprising Justice Amin ud Din and Justice Athar Minallah conducted hearing of the petitions of Faisalabad Electricity Supply Company Limited (FESCO), Gujranwala Electric Power Company Limit Lahore Electric Supply Company Limited (LESCO), Multan Electric Power Company Limited (MEPCO), Islamabad Electric Supply Company Limited (IESCO), and National Electric Power Regulatory Authority. The LHC on February 6, 2023 had declared that the FPA, QTA and change of status of tariff from industrial to commercial by the Nepra as illegal and without lawful authority.

Salman Akram Raja, who represented some of the consumers before the LHC, contended that since NEPRA was not constituted as per the amendment made in the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 on 1st December, 2021 therefore they had filed petitions before the LHC, adding the basic issue before the LHC was that of the constitution of the body (NEPRA). Raja told that since the appeal against the NEPRA order had to be filed in 30 days, but now as due to the LHC judgment they are rendered without remedy of no fault of them, therefore they should be allowed to file the appeals before the Tribunal.

The bench observed that the high court should have provided the remedy by determining the tariff.

Justice Minallah stated the court could have passed the order to complete the body and it was the authority of that body to determine the electricity rate, adding no court can go into the technical issues. The Chief Justice asked from the consumers' counsel how his clients could say as the NEPRA was not properly constituted so they would not pay the electricity bills.

The attorney general contended that the petitions filed before the LHC were not maintainable as the petitioners had an adequate remedy provided under the law, and the Article 199 of the constitution stipulates that when the adequate remedy was available before a competent forum then that should have been availed. He stated that the petitioners can file the review petition against the order NEPRA order under Section 7 of the NEPRA Act, as well as by filing an appeal under Section 12A before...