LHC waives off fuel adjustment charges for electricity consumers

LAHORE – The Lahore High Court (LHC) on Wednesday quashed fuel adjustment charges (FAC) being received by the government on electricity bills from consumers.

The high court issued the order while hearing a plea against collection of FAC from the consumers. It has ordered the consumers to pay their bills after excluding the fuel adjustment charges.

At outset of hearing, petitioner argued that imposition of FAC will increase the power tariff and urged the court to declare the charges null and void.

LHC has also issued notices to the federal government, the Federal Bureau of Revenue, Lahore Electric Supply Power Company (LESCO) and others, directing them to submit their response in next hearing on September 14.

In a quick relief measure for 17.1 million power consumers, Prime Minister Shehbaz Sharif on Tuesday announced waiving fuel adjustment charges in electricity bills.

The premier announced the relief while addressing the nation during his maiden visit to Qatar.

PM Sharif said the waiving off of fuel cost adjustment, which is a major chunk of utility bills, would benefit millions of consumers while assuring relief for the remaining 13 million consumers in near future.

The exemption will also apply to tube-well users, PM said, while mentioning that small traders faced difficulties due to fixed tax, therefore, the government waived it.