SHC directs K-Electric to submit sale, purchase agreement with Shanghai Power company

KARACHI: The Sindh High Court on Tuesday directed K-Electric to place on record sale, purchase agreement, if any, with the Chinese company Shanghai Electric power firm. The direction came on a petition seeking constitution of a judicial commission to probe the overbilling of Rs62 billion by the power utility to its consumers.

Petitioners Karamat Ali, Pakistan Institute of Labor Education, and others are seeking an inquiry into acts and issues of K-Electric with regard to overbilling to consumers, unpaid and payable dues of power utility to various government entities, non-implementation of time of use metering billing facilities and failure to resolve pending dispute prior to transfer of indirect shareholding of K-Electric to Shanghai Power electric company.

Additional Attorney General Salman Talibuddin sought time to file comments on behalf of the federal government as well as on behalf of the Shangai Power company, one of the respondents in the petition.

Petitioner's counsel Faisal Siddiqui opposed the representation of Shanghai Power company by federal law officer submitting that Mr. Talibuddin could not represent the Chinese firm as the federal law officer of the government. The federal law officer submitted that the Chinese company wanted to purchase shares of the K-Electric and disclosure of such private company agreement will affect the shares of the company. 

An SHC’s division bench, headed by Justice Nadeem Akhtar, directed the additional attorney general to satisfy the court as to how he could represent the private company when he was representing the federal government in the case.

The counsel of NEPRA and K-Electric sought time to file comments on the petition. The court directed the counsel of K-Electric to submit the copy of sale, purchase agreement with the Chinese Shanghai Power company on April 18.

Petitioners' counsel Faisal Siddiqui submitted in the petition that official respondents failed to investigate issues of Rs62 billion overbilling to the consumers by the K-Electric despite reference of secretary power to NEPRA regarding unfair tariff for K-Electric consumers, making them pay an additional Rs.62 billion. 

The court was requested to constitute a judicial commission for inquiry into the tariff related issues and direct the government to disclose terms of all agreements for transfer of shareholding of K-Electric to Shanghai power company and restrain transfer of shareholding till the conclusions of the judicial commission.