Lahore High Court dismisses petition against capacity charges, IPP payments

Justice Ahmad Nadeem Arshad issued a six-page written judgment on the petition, which sought judicial intervention against capacity charges and additional payments to IPPs

LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-June 9^th, 2026) The Lahore High Court has dismissed a petition challenging capacity charges in electricity bills and alleged excess payments to Independent Power Producers (IPPs), declaring it not maintainable.

Justice Ahmad Nadeem Arshad issued a six-page written judgment on the petition, which sought judicial intervention against capacity charges and additional payments to IPPs.

The court held that policymaking in the energy sector falls exclusively within the domain of the government and Parliament, and the judiciary cannot act as an appellate forum for economic, financial or regulatory policies. It further observed that mere disagreement with a policy does not constitute valid grounds for filing a constitutional petition.

In its ruling, the court stated that it cannot assume the role of a regulator, auditor or economic expert, adding that matters related to capacity charges and electricity tariffs fall within the jurisdiction of policymakers.

<?php /*?> <?php */?>

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

The court further emphasized the principle of separation of powers, stating that the judiciary must exercise restraint in administrative and governmental matters. It also ruled that directing the recovery of payments made to IPPs is beyond the scope of judicial authority, and courts cannot be used to initiate policymaking under the guise of public interest litigation.