LAHORE: The Lahore High Court has declared as illegal the recovery of surcharges, like Equalisation Surcharge, Debt Servicing Surcharge, Universal Obligation Fund Surcharge and Neelam Jhelum Surcharge, under electricity bills and directed the federal government to refund the amount collected under the heads of surcharges.

A division bench comprising Justice Syed Mansoor Ali Shah and Justice Ayesha A. Malik issued the order on Friday disposing of an intra court appeal (ICA) filed by a cement company and others.

Advocate Azhar Siddique, the leading counsel of the appellants, argued that the power of the government to levy the impugned surcharges under Section 31(5) of the Nepra Act, 1997, was a negation of the Constitution.

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He said that supply 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 a violation of the fundamental rights, as also exploitation in term of Article 3 of the Constitution.

The bench struck down the Section 31 (5) of the Regulation, Transmission and Distribution of Electric Power Act, 1997, and the surcharges for being unconstitutional and illegal.

The bench directed the government/Nepra to refund/adjust the amount collected from consumers under the surcharges and to work out a repayment plan within three months from the receipt of the order.

Published in Dawn, May 30th, 2015

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