LAHORE: The Lahore High Court has declared the imposing of Equalisation Surcharge, Debt Servicing Surcharge, Universal Obligation Fund Surcharge and Neelam-Jhelum Surcharge by the federal government as being unconstitutional and illegal. The said surcharges were collected through electricity bills from the consumers by the electricity supply companies.
A division bench of the Lahore High Court, comprising Justice Syed Mansoor Ali Shah and Justice Ayesha A Malik heard the Inter Court Appeal (ICA) 1068/2014, filed by Flying Cement Company Limited, and disposed of the same along with 269 other petitions of identical nature.
Justice Ayesha A. Malik authored the judgement in the case. The court was assisted by amicus curie namely Advocate Khaleequz Zaman, Advocate Waqas Ahmad Meer and Advocate Waseeul Hasnain Naqvi. Through the ICA, the appellants/petitioners’ counsels Advocate 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 is ultra vires the constitution and negation of the constitution itself, as the same has been added/amended through the Finance Act, 2008. They took the plea that provision of electricity is a fundamental right under Article 9 read with 14, and that the annual tariff determination under the prevailing practice by including the line losses, theft, administrative losses etc is violation of the aforesaid fundamental rights, 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 court has struck down the Section 31(5) of the Regulation, Transmission and Distribution of Electric Power Act, 1997 and the surcharges thereunder, ie, Equalisation Surcharge, Debt Servicing Surcharge, Universal Obligation Fund Surcharge and Neeelum-Jhelum Surcharge as being unconstitutional and illegal. The federal government has been directed to refund/adjust the amount collected from the consumers under the said surcharges and NEPRA has been directed to work out a repayment plan within three months from the receipt of the order.
