orders Nepra to Determine FAC for KESC tariff
High Court Friday ordered National Electric Power
Regulatory Authority to determine Fuel Adjustment
Charges (FAC) for Karachi Electric Supply Company
from April till June 2010, but not pass on the same
to consumers till August 10, 2010.
A division bench, comprising Chief Justice Sarmad
Jalal Osmany & Justice Tufail H Ebrahim, was hearing
three identical petitions filed by The Law
Foundation, Sindh High Court Bar Association & Human
Rights Commission for South Asia challenging
privatisation of KESC & hike in electricity tariff.
They submitted that increase in KESC power tariff as
approved by Nepra was made on the basis of
misrepresentation, without evaluation. Any type of
tariff increase within present framework was
illegal. They submitted average generation of KESC
from its own resources was about 600MW and equal
amount of electricity was purchased from other
sources during June 2009 to January 2010.
But, KESC was charging FAC on the entire power
supply for distribution in the city. Imposition of
FAC on entire consumption was contrary to law,
unreasonable and unconstitutional. They contended
that the government provided subsidy to power
utility and Rs 36 billion were accumulated under
this head, but its benefit was not given to
consumers. They prayed the court to declare
privatisation of KESC and hike in power tariff by
the power utility without lawful authority illegal,
On Friday, Advocates Anwar Kamal & Kashif Hanif for
Nepra with Nepra Director (Operations) Sajjad
Muhammad Qureshi, Advocate Saman Imtiaz for Ogra,
Kumail Shirani, Abdul Rauf for KESC, DAG Ashiq Raza
and Assistant AG Saifullah appeared.
The SHC division bench after hearing partly
arguments of Advocates Anwar Kamal and Javed
Siddiqui adjourned the matter till August 10, 2010.
The court order said: "In the meanwhile, by consent
it is ordered that KESC may charge Fuel Adjustment
Charges to consumers, which have already been
determined by Nepra vide notification SRO
387(1)/2010 dated June 4, 2010 ie up to the month of
March 2010. However, thereafter although Nepra may
determine FAC for April, May and June 2010 etc,
these shall not be passed on to consumers till final
orders passed in this petition."
The court requested the Vice Chancellor of NED
University of Engineering Karachi to nominate a
suitable gentleman, who is well versed and qualified
in power generation both hydel and fuel/gas based,
to assist this court in order to come up to a just
and proper conclusion vis-à-vis FAC authorised by
Nepra for KESC. In this regard, the VC may
correspond to Nazir of this court.