ISLAMABAD: The Supreme Court of Pakistan has asked the National Electric Power Regulatory Authority (NEPRA’s) counsel to seek instructions from his client for an option to provide a chance for a hearing to the appellants. The top court also issued directives to LHC Registrar to fix the matter before a bench for October 13, seeking directives to declare notification for the appointments of NEPRA Chairman Brig (retd) Tariq Saddozai and four members of the Authority illegal.
A three judge bench headed by Justice Mian Saqib Nisar on Wednesday took up 28 identical pleas challenging the NEPRA’s decision to reduce the tariff of Small Power Producer (SPPs) /Captive Power Plants (CPPs). Barrister Ali Zafar, appearing on behalf of Shaikarpur Power Private Limited, Omni Power Private Limited and other power companies, argued that the economy is suffering as very cheap electricity is available to the Distribution Companies but is not being utilised.
He argued that NEPRA had invited, authorised and allowed various local investors to set up small power projects and had given them generation licenses after approving their tariffs. He relied on advertisements, letters, documents, meetings and permissions of the NEPRA, dating as far back as 2005 and the Regulation of generation, transmission and distribution of Electric Power Act 1997 and the NEPRA Rules 1998.
He pleaded that his clients had set up power projects based on the NEPRA’s promises by investing substantial amount whereas NEPRA decided to drastically reduce the tariff payable to the power projects to an extent where the power projects had been closed. The counsel further said that as per NEPRA’s decision, the only requirement was that the tariff should not adversely affect the consumer end tariff.
Urging the court to declare the NEPRA decision illegal, Barrister Ali Zafar said that NEPRA applied the tariff retrospectively, which was also illegal. Khawaja Haris, counsel for NEPRA, told the court about the current status of the petition pending before the Lahore High Court (LHC). However, NEPRA’s counsel shall commence his further arguments on Thursday (today).
Following the arguments, the bench directed NEPRA counsel to seek instructions from his client about finding out an opportunity to hear the petitioners’ stance over determination of the tariff in the matter.
Moreover, challenging the appointments of the NEPRA Chairman and the Authority’s four members from all the provinces under Article 199 of the Constitution before LHC, petitioner Dr. Nadeemul Haq has made Secretary Establishment Division, Secretary Ministry of Water & Power, Chairman of the NEPRA Brig. retd Tariq Sadozai, Member NEPRA form Sindh Habibullah Khilji, member from Punjab Khawaja Muhammad Naeem, member from Balochistan Major retd Haroon Rashid and member from KPK Himayatullah Khan respondents.
The petitioner has alleged that the Establishment Division Secretary has appointed the NEPRA Chairman and four members of the Authority, ignoring the eligibility criteria, which has been provided in Section 3 of the NEPRA Act 1997.