LAHORE, Jan 28: The Lahore High Court on Monday set aside the levy of fuel price adjustment (FPA) on electricity consumers using units up to 350 per month.

The court announced the verdict disposing of more than 100 petitions filed by industrial units and domestic consumers.

The court referred the case of consumers using over 350 units per month to Nepra with directions to decide the matter within one month.

The petitioners had submitted that the federal government was collecting billions of rupees through fuel adjustment surcharge on electricity bills. They contended that the consumers were already paying different kinds of taxes and that surcharge was adding to their problems. They requested the court to declare the FPA illegal and unlawful.

The court had already stayed the recovery of the impugned surcharge from consumers of 350 units maximum.

In the case, the government defended the FPA levy and stated it was not a tax but it had been included in the cost of electricity. It was argued that the government was already giving a subsidy of Rs300 million to electricity consumers. — Staff Reporter