The Lahore High Court (LHC) on Monday, aiming to contest the recent electricity tariff hike and the pro-rata formula implemented by the National Electric Power Regulatory Authority (NEPRA). Advocate Azhar Siddique, representing the plaintiffs, moved the plea arguing that NEPRA has not adequately addressed their concerns regarding the pro-rata formula, which he asserts is unconstitutional.
The plea specifically contends that the charges levied on unused electricity units are unjust, labeling the act as a ‘dacoity’ (a term for banditry). The applicants have urged the LHC to intervene and mandate that electricity charges should only apply to the units actually used by consumers, rather than under the controversial pro-rata formula.
The challenge comes in the wake of a recent federal decision, approved on July 4, to increase the basic power tariff by Rs5.72 per unit. This hike was sanctioned by the federal cabinet through a circulation summary, indicating a move to adjust tariffs in response to rising costs and inefficiencies within the power sector. This decision is set to be forwarded to NEPRA for uniform tariff implementation across the country, following a formal application by the Power Division.
The context of this legal dispute is underscored by the significant financial losses reported in Pakistan’s power sector. According to NEPRA’s latest report, the sector incurred a loss of Rs403 billion in the fiscal year 2022-23. The report highlights the performance of power distribution companies, including K-Electric, revealing that nine distribution companies, K-Electric among them, failed to achieve a 100% recovery rate.
Advocate Azhar Siddique’s plea highlights the frustration of consumers who feel burdened by the additional costs imposed
