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Published 28 Aug, 2012 11:07pm

PHC extends stay against recovery of Pesco fuel charges

PESHAWAR, Aug 28: The Peshawar High Court on Tuesday extended till Sept 18 a stay order restraining Peshawar Electric Supply Company from recovery of fuel adjustment charges (FAC) or any such arrears from consumers in Khyber Pakhtunkhwa in monthly bills, as counsel for the Pesco called for vacation of the stay in view of huge amount of money accumulating against consumers.

A bench comprising Justice Asadullah Khan Chamkani and Justice Shahjehan Akhundzada extended the restraining order, initially issued on Feb 28, after brief proceedings in over 70 identical petitions filed by several industrial units and other entities challenging the levy of FAC/fuel price adjustment (FPA) by the Pesco.

The bench was informed that advocate Supreme Court Ahmad Tariq Raheem had been representing the Water and Power Development Authority and had filed an application seeking adjournment in these cases.

Advocate Abdur Rauf Rohaila appeared for the Pesco and contended that due to continuation of the stay order huge amount of money had been accumulating against power consumers. He requested the court to fix these cases for early hearing and vacate the stay order so that the Pesco could start recovery of arrears.

The respondents in the petition are: Pesco, National Electric Power Regulatory Authority (Nepra), Central Power Purchase Agency (CPPA), Pakistan Electric Power Company (Pepco), secretary ministry of water and power, federal finance secretary and others.

These petitioners have also challenged an order of the Nepra issued on Sept 19, 2011, in an identical matter which was earlier challenged before the high court by an organisation, Human Rights Commission South Asia (HRCSA), but was referred to Nepra last year. The Nepra had declared the levy of FAC/ FPA as legal.

Advocate Shumail Ahmad Butt appeared for the petitioners and contended that the Pesco was not entitled or mandated by law to recover the impugned FAC/FPA or for that matter insist on such recovery through any forcible means, including but not limited to disconnection etc.

The petitioners stated that the country had an overall stated hydroelectric generation capacity of 6,645 MW of which hydroelectric stations in Khyber Pakhtunkhwa alone generated 3,917 MW, which was over 58 per cent of the total generation.

It is added that during 2009-10 the hydel stations of Khyber Pakhtunkhwa generated 15,059 million kWh of electricity whereas the units of electricity consumed within the province were 8,259 million kWh, which was far lesser than the nationally agreed quota of electricity.

They contended that the Nepra had adopted a wrong practice of imposition of FAC or FPA on the pretext of variation of petroleum prices in international market, as Khyber Pakhtunkhwa did not consume electricity produced from other sources, but was self-reliant in terms of hydel generation and produced more electricity than its consumption.

Meanwhile, the bench issued notices to the Nepra chairman, Pesco chief and secretary water and power in a contempt of court petition filed by representative of  HRCSA, advocate Abdul Samad Marwat, who alleged that these officials had violated an earlier stay order issued by the high court.

Mr Marwat argued that despite notices none of the alleged accused persons turned up before the court.

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