Redetermination of tariff

2018 PLD 20 ISLAMABAD Judicial Precedent

S. 31(4), second provisoWord 'anew' in S.31(4), proviso of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997ScopeRedetermination of tariffPrinciple

Word 'anew' shows that when petition for redetermination of tariff is made, the matter has to be decided afresh, as if no previous position on the same has been rendered.

2018 PLD 20 ISLAMABAD Judicial Precedent

Ss. 7(6) & 31 (4)Redetermination of tariffFailure to provide opportunity of hearing

Petitioners were power distribution companies (Discos) and were aggrieved of the National Electric Power Regulatory Authority (NEPRA) with regard to proceedings for redetermination of tariff

Plea raised by petitioners was that they were not provided opportunity of hearing at the time of review of tariff

Contention of the Authority was that opportunity of hearing was granted to petitioners but they did not avail the same and requested for adjournment / postponement time and again

Validity

National Electric Power Regulatory Authority, under the provisions of S.7 (6) of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, had to keep in view the guidelines issued by Federal Government from time to time and to keep balance as much practicable while making decisions or passing orders otherwise

Such guidelines were not per se binding but also could not be ignored by the Authority

If the guidelines were inconsistent with Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, those would not be followed at all, however, if those were not inconsistent, the same were to be applied and followed in order to balance the interests of consumer and electric supplier companies

Authority did not provide adequate opportunity to Federal Government as well as petitioners, which it should have, as they were stakeholders in fixation/redetermination of tariff

High Court directed the Authority to provide opportunity of hearing to Federal Government as well as Distribution Companies while adjudicating/deciding redetermination petitions filed before the Authority and set aside redetermination order already passed by the Authority

High Court directed petitioners / Federal Government not to obtain adjournments/postponements and to facilitate the Authority to decide the matter within the time frame provided in proviso to S.31(4) of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997

Constitutional petitions were allowed accordingly.