A Lahore High Court division bench Friday struck down Section 31 (5) of NEPRA Act 1997 and declared the imposing of equalization surcharge, debt servicing surcharge, universal obligation fund surcharge and Neelam Jhelum Surcharge in electricity bills by the federal government as being unconstitutional and illegal.
The bench directed the federal government to refund/adjust the amount collected from the consumers under the surcharges and NEPRA had been directed to work out a repayment plan within three months from the receipt of the order.
The bench comprising Justice Syed Mansoor Ali Shah and Justice Ayesha A Malik passed the orders while disposing of an intra court appeal filed by Flying Cement Company Limited and others along with 269 other petitions of identical nature.
The bench had reserved the judgement after hearing arguments of all parties and it was announced on Friday in an open court.
Justice Ayesha A Malik authored the judgment in the case whereas the bench was assisted by amicus curie Khaleeq-uz-Zaman Advocate, Waqas Ahmad Meer Advocate and Wasee-ul-Hasnain Naqvi.
Through the ICA, the petitioners’ counsel Muhammad Azhar Saddique along with others assailed the Section 31(5) of the NEPRA Act, 1997 stating that the power of federal government to levy surcharge in view of section ibid was ultra vires of the constitution as the same has been added/amended through the Finance Act, 2008.
They took the plea that provision of electricity was a fundamental right under Article 9 read with 14 and the annual tariff determination under the prevailing practice by including the line losses, theft, administrative losses etc was violation of the aforesaid fundamental rights and as also exploitation in term of Article 3 of the Constitution.
The division bench headed by Justice Syed Mansoor Ali Shah heard the arguments of all the counsels appearing on behalf of the federal government, NEPRA as well as electricity supply companies and petitioners/appellants at length.
The bench has struck down the Section 31 (5) of the Regulation, Transmission and Distribution of Electric Power Act, 1997 and the surcharges there under – equalization surcharge, debt servicing surcharge, universal obligation fund surcharge and Neeelum Jhelum surcharge as being unconstitutional and illegal.
