LHCBA chief moves SC against 1994 power policy

ISLAMABAD: The government’s Power Generation Policy 1994 was challenged in the Supreme Court on Monday with the prayer to declare it unconstitutional, opposed to public policy, and be struck down.

Lahore High Court Bar Association (LHCBA) President Muhammad Asad Manzoor Butt filed a petition in the apex court under Article 184(3) of the Constitution making Federation of Pakistan through the Cabinet Division, Ministry of Water and Power and Ministry of Energy secretaries, National Transmission and Despatch Company (NTDC), National Electric Power Regulatory Authority (Nepra) and Private Independent Power and Infrastructure Board as respondents.

The petitioner also made the Punjab, Sindh, Balochsitan and Khyber Pukhtunkhwa chief secretaries as respondents.

Filed through advocate Hassan Irfan Khan, the petitioner prayed the apex court to declare the Power Generation Policy 1994, issued by the government, and all subsequent similar policies and extensions as unconstitutional and opposed to public policy of Pakistan and strike them down. The petitioner questioned as to whether government and/ or relevant respondents can bind the consumers, without their consent or will to pay capacity charges to the IPPs for the electricity actually not produced by IPPs and actually not purchased, due to guaranteed capacity payment (capacity charges) clauses in the PPAs in violation of the fiduciary duty of the respondents. He further questioned as to whether the respondents performed their functions of “formulation” and “regulation” of policies in relation to “electricity” and exercised “supervision” and “control” over such matters in accordance with the dictates and requirements of the Constitution including those contained in Article 154(1), and in accordance with Articles 2A, 3, 4, 5, 9, 14, 18 and 25 of the Constitution?

The petitioner submitted that de spite the constitutional guarantee to a dignified life, citizens across the country are suffering due to exorbitant electricity bills, unannounced and prolonged load-shedding, and the overloading of transmission and distribution lines which has led to frequent forced outages.

“The situation is exacerbated by the inefficiencies and mismanagement within the power sector, which have not only compromised the quality of life but also burdened the citizens with unsustainable financial liabilities,” he contended.

The petitioner further submitted that the main purpose and aim of this petition is to seek redressal and relief from the apex court for the people of Pakistan.

The petitioner prayed the apex court to direct the relevant respondents to stop making any unlawful, undue and unearned payments to the IPPs which cannot be justified to be lawful within the framework of Constitution, the law and performance obligations of the IPPs under the PPAs, the implementation agreements and other related agreements.

He further prayed the court to declare that the power purchase agreements, the implementation agreements and related agreements with the terms such as payment of capacity charges, guaranteed payments without performance of obligations of IPPs etc, signed by the respondents with the IPPs are one sided, unfair, unreasonable, unjustified, non-transparent, unlawful, unIslamic, discriminatory, exploitative and void. He prayed the apex court to direct the relevant respondents that power purchase agreements be disclosed to the apex court.