Fuel adjustment charges in electricity bills are illegal, rules LHC


LAHORE – Power consumers are berating electric supply companies over the Fuel Adjustment Charges for quite some time, and the matter was eventually landed in Lahore High Court.

On Monday, Lahore High Court declared fuel adjustment charges in electricity bills illegal, directing the central government to give subsidy of up to 500 units for domestic consumers.

Justice Ali Baqar Najafi led the hearing and pronounced the reserved verdict on the petitions jointly filed by Azhar Siddique and other members against FCA charges.

During today’s hearing, the court also instructed the government to use alternate (cheap) sources to produce power, as electric bills, especially in summer seasons, cost no less than a fortune.

As the country is facing the worst economic crisis in recent times, the government jacked up electricity prices to balance generation costs. Sharif-led government has also slashed subsidy on electricity in wake of the severe devaluation of local currency.

It is pertinent to mention that International Monetary Fund has continuously pushed the incumbent government to end power subsidy to the export-oriented sector.

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