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LHC declares fuel price adjustment in electricity bills ‘illegal’

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  • LHC Judge Ali Baqar Najafi announces verdict.
  • Court nullifies change in tariff without hearing consumer.
  • NEPRA directed to take action against overcharging.  

LAHORE: In a major decision, the Lahore High Court (LHC) on Monday declared the imposition of fuel price adjustment in electricity bills illegal.

LHC Judge Ali Baqar Najafi announced the verdict, which was reserved on October 10, 2022, on similar petitions amounting to 3,659.

The court declared that “the demand of fuel price adjustment, quarter tariff adjustment, change of status of tariff from industrial to commercial by the National Electric Power Regulatory Authority (NEPRA) not constituted fully under section 3 of the NEPRA Act, 1997 is illegal,” read the judgement.

The court also nullified the change in tariff without hearing the consumer and directed NEPRA to take action against the overcharging.

The regulatory body has been directed to inform the consumers about the charges on a monthly basis and the fuel price adjustment shall not go beyond seven days and the quarter tariff adjustment shall not go beyond the statutory period, the verdict said.

The court directed NEPRA to fix the responsibility of over-charging on the basis of line losses and the less efficient power plants and the financial burden will also be shared by the companies under a rational proportion.

The court also directed the federal government to provide a maximum subsidy to the domestic consumers of 500 units per month and to not demand extraordinary taxes “having no nexus with the consumption of energy which may be recovered through other modes”. 

“The NEPRA authority must keep in mind while deciding about the tariff that interaction between the consumer and the producer should not be excited by the fiduciary relationship for the simple reason that to earn huge profit the performance of the producing company must increase and not the price be increased and, therefore, imposition of various taxes which can be recovered otherwise, amounts to economic strangulation of the consumers,” read the verdict.

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Pakistan Tehreek-e-Insaf (PTI) has proposed seven individuals to its founder, Imran Khan, for consideration as founding members of PTI for membership in the next Judicial Commission.

None of the nominated individuals are attorneys; rather, the roster includes four Members of the National Assembly (MNAs) and three senators.

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The PTI founder will evaluate and endorse two names from the suggested list, which will then be sent to the Speaker for future actions.

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According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola dropped by Rs900 in the local market, ending at Rs283,400.

The cost of 10 grams of 24-karat gold also decreased by Rs771, reaching Rs242,970.

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However, the local market’s silver prices were stable at Rs3,350 per tola, untouched by the recent fluctuations in gold prices.

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During Punjab’s anti-polio campaign, polio workers will provide drops to children as young as five.

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During the October 28–November 3 anti-polio campaign in Punjab, polio workers will knock on every house in the province, including those in Lahore, Rawalpindi, and Faisalabad.

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