Stay order extended to restrain fuel price adjustment collection

Karachi: Sindh High Court (SHC) has extended stay order restraining power utilities from collecting fuel price adjustment (FPA) till further orders. A division bench of SHC headed by Justice Faisal Arab was seized with the hearing of the petition filed by over 50 businessmen, who have taken National Electric Power Regulatory Authority (Nepra), Pakistan Electric Supply Company (PEPCO) and Hyderabad Electric Supply Company (HESCO) and others for charging fuel price adjustment.

The division bench directed the counsel acting on behalf of the PEPCO and the HESCO to submit comments on the petition on next hearing and adjourned the hearing of the case by a date to be fixed later by the court office.

The petitioners, flour mills, CNG stations and petrol pumps in Sindh had submitted that once bills were paid by a consumer the transaction between the consumer and the power utility stood closed.

They said that power utilities were receiving the bills containing heavy amount in shape of FPA for last year 2011, adding that respondents included FPA in the bills with retrospective effect and put the burden on their shoulders to incur losses.

They said that billing authorities were restrained from doing so by the ministry of water and power, through a letter dated March 27,2012. They said that letter had held in abeyance the FPA determination pertaining to October 2011-January 2012 till a suitable mechanism was evolved for the recovery of the amounts.

The petitioners said that the respondents did not comply with the order and charged FPA in the bills sent to the petitioners this month.

They prayed to the court to restrain the respondents from recovering FPA till the disposal of the present petition. Earlier, the court had restrained the power entities from taking any action against petitioners regarding recovery of FPA.

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