LHC dismisses petition against capacity charges

The Lahore High Court (LHC) has dismissed as non-maintainable a petition challenging the collection of capacity charges and tariffs through power bills, ruling that policymaking in the energy sector falls within the domain of the government and Parliament rather than the judiciary

LAHORE, (APP - UrduPoint / Pakistan Point News - 9th Jun, 2026) The Lahore High Court (LHC) has dismissed as non-maintainable a petition challenging the collection of capacity charges and tariffs through power bills, ruling that policymaking in the energy sector falls within the domain of the government and Parliament rather than the judiciary.

Justice Ahmad Nadeem Arshad issued a detailed six-page judgment on a petition filed by Ashba Kamran, observing that courts cannot act as appellate forums for economic, financial, and regulatory policies. The judgment noted that mere disagreement with a policy does not constitute sufficient grounds for invoking the court’s constitutional jurisdiction.

The court held that issues relating to capacity charges and electricity tariffs are matters for policymakers and regulators, adding that the petitioner had failed to establish any violation of fundamental rights.

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It further observed that the judiciary cannot assume the role of a regulator, auditor, or economist in reviewing policy decisions.

Emphasizing the principle of separation of powers, the judgment stated that judicial intervention is warranted only when actions are found to be illegal or unconstitutional. The court cautioned against undue interference in administrative and governmental affairs.

The LHC also ruled that ordering the recovery of payments already made to Independent Power Producers (IPPs) does not fall within the court’s jurisdiction. The judgment stressed that public interest litigation cannot be used as a means to compel the judiciary to formulate policy.

The petitioner had sought a comprehensive review of the electricity sector’s regulatory framework while challenging the imposition of capacity charges and tariffs in electricity bills.