Pakistan

Lahore High Court Dismisses Petition Against Capacity Charges in Electricity Bills

LAHORE: The Lahore High Court (LHC) has dismissed a petition challenging the collection of capacity charges and electricity tariffs in power bills, declaring the case non-maintainable.

In a detailed six-page written judgment, Justice Ahmed Nadeem Arshad ruled that policymaking in the energy sector falls within the domain of the government and Parliament, not the judiciary.

The court observed that it cannot function as an appellate forum for reviewing economic, financial, or regulatory policies. The judgment emphasized that mere disagreement with a government policy does not constitute sufficient grounds for filing a constitutional petition.

According to the ruling, matters relating to capacity charges and electricity tariffs are within the jurisdiction of policy-making and regulatory institutions. The court further stated that it cannot assume the role of a regulator, auditor, or economist in such matters.

The judgment noted that the petitioner, Ashba Kamran, failed to establish any violation of fundamental rights. It added that judicial intervention in constitutional matters is only justified when a government action is shown to be unlawful or unconstitutional.

Referring to the principle of separation of powers, the court stressed that the judiciary must exercise restraint in administrative and governmental affairs and avoid encroaching upon the responsibilities of other state institutions.

The court also held that directing the recovery of payments already made to Independent Power Producers (IPPs) falls outside its constitutional jurisdiction. It remarked that courts cannot be used as platforms for policymaking under the guise of public interest litigation.

The petitioner had sought to challenge the inclusion of capacity charges and tariffs in electricity bills and requested a comprehensive review of the regulatory framework governing Pakistan’s power sector. However, the court declared the petition inadmissible and dismissed it.

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