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Consumers of 350 units exempted from FPA

By Our Staff Reporter 2013-01-29
LAHORE, Jan 28: The Lahore High Court on Monday set aside the levy of fuel price adjustment (FPA) on electricity consumers using units up to 350 per month.

The court announced the verdict disposing of more than 100 petitions filed by industrial units and domestic consumers.

The court referred the case of consumers using over 350 units per month to Nepra (National Electric Power Regulatory Authority) with directions to decide the matter within one month.

The petitioners had submitted that the federal government was collecting billions of rupees through fuel adjustment surcharge on electricity bills. They contended that the consumers were already paying different kinds of taxes and that surcharge was adding to their problems. They requested the court to declare the fuel price adjustment illegal and unlawful.

The court had already stayed the recovery of the impugned surcharge from the consumers of 350 units maximum.

In the case, the government through its counsel defended the levy of the fuel price adjustment and stated that it was not a taxbutit had beenincluded in the cost of electricity.

It was argued that the government was already giving a subsidy of Rs300 million to the electricity consumers.