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September 03, 2008 Wednesday Ramazan 2, 1429





Nepra barred from raising tariff for industrial units



By Our Reporter


LAHORE, Sept 2: Justice Hamid Ali Shah of the Lahore High Court restrained the National Electric Power Regulatory Authority (Nepra) and power distribution companies on Tuesday from increasing the tariff for industrial consumers till Sept 15.

The judge issued the order on petitions filed by the All Pakistan Textiles Mills Association (Aptma) and others. The court said it had already passed a similar order on a petition against Lesco.

The judge decided to proceed on the petitions from the next date of hearing.

The petitioners through their counsel Mian Mahmood Rashid and others pleaded that Nepra had determined the tariff on Feb 23 last year forcing the industrial consumers to pay substantially higher electricity tariff. They said that despite suffering financially, Aptma members started making payment in the national interest.

However, only 13 days after increasing the tariff, distribution companies -- Lesco, Fesco, Gepco and Mepco -- filed a review petition in Nepra.

The petitioners argued that Nepra did not have the review powers under the law, but it accepted the demand for a hike in tariff on January 10 this year without giving any notice to the petitioners or their parent association, Aptma.

They said that just one month after that increase, Nepra again increased the tariff on Feb 12 while acting under self-regulated and automatic mechanism, called biannual adjustment. The power regulator again increased the tariff on Aug 22.

The petitioners argued that Nepra had violated the court order by making a final determination of electricity tariff because the LHC had granted stay in a similar case against Lesco. They said that the review order of Jan 10 was illegal and void ab initio.

Justice Hamid Shah will also hear a petition against the proposed 31 per cent raise in electricity tariff.

Petitioner Advocate Tariq Aziz said the planned raise would “crush” the salaried class already reeling under skyrocketing prices of essential goods.







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