LHC throws out petition on power capacity charges

The Lahore High Court has dismissed a petition challenging capacity charges included in electricity bills and additional payments made to independent power producers (IPPs), declaring it inadmissible.

Justice Ahmed Nadeem Arshad issued a six-page written judgment on the petition related to capacity charges and alleged excess payments to IPPs.

The court observed that policy-making in the energy sector falls within the domain of the government and parliament, not the judiciary.

It further stated that the court cannot act as an appellate forum for economic, financial or regulatory policies, and that mere disagreement with a policy does not justify filing a constitutional petition.

In its ruling, the court noted that it cannot assume the role of a regulator, auditor or economist. It held that matters related to capacity charges and electricity tariffs lie within the authority of policymakers and regulatory institutions.

The judgment stated that the petitioner failed to establish any violation of fundamental rights, adding that judicial intervention is only justified in cases involving illegal or unconstitutional actions.

The court further emphasised the constitutional principle of separation of powers, stressing that the judiciary must exercise restraint in administrative and governmental matters.

It also ruled that ordering the recovery of payments made to IPPs is beyond the court’s jurisdiction, and that public interest arguments cannot be used to compel courts to engage in policy formulation.