Lahore High Court Rejects Petition Against Capacity Charges and IPP Payments in Electricity Bills
LAHORE: The Lahore High Court has dismissed a petition challenging capacity charges in electricity bills and additional payments to Independent Power Producers (IPPs), declaring the case inadmissible.
Justice Ahmad Nadeem Arshad issued a six-page written judgment on the petition related to capacity charges and alleged excess payments to IPPs.
The court observed that policymaking in the energy sector falls within the jurisdiction of the government and parliament, not the judiciary. It stated that courts cannot act as appellate bodies over economic, financial, or regulatory policies, and mere disagreement with a policy does not justify filing a constitutional petition.
The judgment further noted that the judiciary cannot act as a regulator, auditor, or economist, and matters related to capacity charges and electricity tariffs fall within the domain of policymakers.
The court held that the petitioner failed to establish any violation of fundamental rights, adding that judicial intervention is only justified in cases of illegal or unconstitutional actions.
It also emphasized the separation of powers, stating that courts must exercise restraint in administrative and governmental matters. The court ruled that ordering refunds from IPPs is beyond judicial jurisdiction and that policy formulation cannot be directed by courts under the guise of public interest litigation.
