LAHORE, Dec 22: The Lahore High Court (LHC) vacated on Thursday a stay order earlier granted against the recovery of fuel adjustment charges from industrial and commercial consumers for April and May.

However, the court exempted domestic consumers using up to 350 units from fuel adjustment charges.

Justice Muhammad Khalid Mehmood Khan passed the orders on hundreds of identical petitions challenging the recovery of fuel adjustment charges, after hearing arguments of respondent’s counsel Khawaja Abdul Rahim and petitioner's counsel Mian Mehmood Rasheed. The court adjourned hearing of the petitions.

The petitions were filed by Gulshan Spinning Mills and others making WAPDA and NEPRA respondents.

The petitioners’ counsel submitted that electricity was one of the biggest single components which alone constituted 50 per cent of their total cost of end product. Minor fluctuations in electricity prices affected the cost of production.

Petitioners submitted that they had paid electricity bills for April, May and June but the respondents acting retrospectively added 20 per cent of the bills as fuel adjustment charges for months of April and May to the bill of October.

They submitted the respondent electric companies took the action on basis of two notifications issued by the federal government on Aug 23, 2011.

They contended that as per law no notification having adverse financial impact could be issued retrospectively.

Petitioners contended that the bills for the months of April and May had been paid, therefore, it was a close and past transaction and the respondents were not authorised to receive fuel adjustment charges for said months.

They prayed the court to set aside fuel adjustment charges and the notifications issued in this regard besides restraining respondents from any adverse action against them.—APP