Power tariff hike illegal: SC

ISLAMABAD: The Supreme Court on Tuesday observed that the increase in power tariff was illegal and no one would be allowed to run a ‘Nadir Shahi system’ in the country. Chief Justice Iftikhar Muhammad Chaudhry said instead of evolving an effective strategy for recovering the outstanding amount of Rs441 billion, the government had increased the electricity tariff despite the fact that fuel prices in the international market were decreasing. He said what option was left with the people other than dying? The chief justice, while hearing a suo moto case pertaining to unprecedented loadshedding, observed that the government was not authorised to issue the notification regarding an increase in power tariff, saying that the National Electric Power Regulatory Authority (Nepra) was the competent authority to do so. Justice Iftikhar directed Attorney General Munir A Malik to assist the court today (Wednesday) in the matter in which the incumbent PML-N government massively increased the power tariff and petroleum products prices, effective from October 01. In compliance with the court’s order, Additional Attorney General Attique Shah submitted the notification, which the government had earlier issued for an increase in power tariff.According to the notification issued on Monday, consumers utilising up to 200 units would be exempted from this increase. It shows Rs5.89 per unit increase for domestic consumers using power from 201 to 300 units. Now they will have to pay Rs14 per unit instead of Rs8.11. In the same way, Rs3.67 per unit have been increased for consumers using 301 to 700 units. They will have to pay Rs16 per unit instead of Rs12.33. Likewise, according to the notification, consumers using 701 and more units per month will pay Rs2.93 per unit more. For them the per unit rate will be Rs18 instead of Rs15.01. Similarly, the domestic consumers having ‘Time of Use’ meters can bear a Rs4 per unit hike in the peak hours. Earlier, during the proceedings, the court asked the additional attorney general to submit the government’s notification for the increase in power tariff.Later, after some time, the AAG informed the court that the secretary water and power was busy in a meeting while he had also contacted at least 10 people in the ministry, including additional secretary, but nobody had the said notification. The court asked the AAG to produce the copy of the said notification which was submitted. The court then directed Attorney General Munir A Malik to appear before the court today (Wednesday) and assist it in the matter. During the hearing, Managing Director National Transmission and Dispatch Company (NTDC) Zargham Ishaq told the court that the hike would not affect consumers using 200 units or less. He said a new system was being introduced in the country that could prevent power theft. He said the National Finance Commission Award (NFC) could better resolve the power crisis. Justice Jawwad S Khawaja, while addressing the NTDC MD, said: “You are distributing electricity, then why the burdeneshould be placed on the provinces.”Chief Justice Iftikhar Chaudhry remarked that only poor masses were being targeted, adding that the government was not authorised to increase the power tariff but Nepra was the competent authority for the purpose. Chairman Nepra Khawaja Naeem told the court that the power sector runs on cash and shortage of money causes loadshedding and power cuts. He said due to a lack of recovery during the past six years, the receivable amount had risen to Rs441 billion. The chief justice asked why this burden was being passed down to consumers who paid their bills. “Our problem is that you are increasing the power tariff day by day and poor people are being targeted,” the CJ said. He questioned the chairman Nepra as to what mechanism he had for resolving the power crisis and recovering 141 billion rupees. Justice Jawwad S Khawaja remarked that even the circular debt was paid off by burdening the common man. “Only the Constitution and law of the country will prevail in the country and there is no room for Nadir Shahi system,” he added. Later, the court adjourned the hearing till today (Wednesday) asking the attorney general to assist the court in the matter. The court also directed the chairman Nepra to provide the court details pertaining to the pending litigation of Nepra in different courts.