Lahore High Court has issued a written decision declaring fuel price adjustment as illegal. The court ordered Nepra not to charge more tariff than the capacity of domestic consumers.
The Supreme Court in its judgment declared the current fuel price adjustment and quarter tariff adjustment as illegal. And said that fuel price adjustment and quarter tariff adjustment are not as per NEPRA Act.
The decision further said that the change of tariff for industrial to commercial customers is also not in accordance with the Nepra Act. Fuel price adjustment charges should be informed to consumers on monthly basis.
According to the decision, the fuel price adjustment will not go beyond 7 days. Quarter tariff adjustment should also not go beyond the given period. Tariff should not be increased unilaterally without hearing the stand of industrial and commercial consumers.
According to the decision, maximum subsidy should be given to domestic consumers who install up to 500 units. Do not ask for unusual taxes that are not related to electricity consumption.
The court said that the federal government should find ways to generate electricity from solar, hydel, nuclear and wind. Arrangements should be made to buy cheap electricity from other countries.
According to the written judgment of the court, profit can be increased by increasing performance rather than price. Imposition of various taxes amounts to economic strangulation of the consumer.