BRIEF – WRIT PETITION NO.

12655/2011 REGARDIGN REFUND OF

EXCESS AMOUNT OF SECURITY AGAINST EXTENSION OF LOAD FROM
515 KW TO 2500 KW AND FROM 2500 KW TO 3100 KW OF M/S REHMAT
STEEL MILLS KOKHAR ROAD BADAMI BAGH LAHORE
(i) The case of extension of load of M/s Rehmat Steel Mills from 515 kW to
2500 kW was approved in 09/2007 by proposing 11 kV independent feeder
from 132 kV Badami grid station (CP-134) and only Demand Notice of
capital cost: Rs.16,16,066/- was issued. It was mentioned at clause – 1 of
the TC that Demand Notice of security of the extended load amounting
Rs.18,06,350/- (@Rs.910/- per kW) will be issued after realization of
capital cost. However after payment of D.N. of capital cost: go-ahead
signal for execution of work of proposed 11 kV feeder was issued to PD
(Construction) vide No. 8845-51 dated 26-10-2007 (CP-142).

(ii) Meanwhile the consumer applied for further EOL from

2500 kW to 3100 kW in 07/2008 which was also approved vide No. 2189-
96 dated 7-8-2008 (CP-161). As D.N of security was not issued at the time
of sanctioning EOL from 515 kW to 2500 kW therefore D.N. of security
for the total load to be extended i.e. from 515 kW to 3100 kW @ Rs.910/-
per kW which comes to be Rs.23,52,350/- was issued vide No. 30 dated
7-8-2008 (CP-160).

(iii) On the request of consumer 06 installments of security were allowed with

mark up vide No. 6532-37 dated 27-9-2008 (CP-170) but consumer did not
deposit the same

(iv) Meanwhile the rates of security were enhanced by the Government of

Pakistan vide Notification SRO No. 1180(I)/2008 dated 12-11-2008 from
Rs. 910/- to Rs.3060/- per kW. Therefore revised Demand Notice of
security for the extended load from 515 kW to 3100 kW at the enhanced
rates of security amounting Rs.79,10,100/- was issued vide No. 373 dated
11-5-2009 (CP-178) but consumer did not deposit the same.

(v) In 12/2009, on the request of consumer 06 installments of revised D.N. of

security amounting RS.79,10,100/- were allowed with 50% amount as
down payment i.e. 39,55,050/- and remaining amount in 05 equal monthly
installments.

(vi) Accordingly consumer provided post dated cheques for the amount of
installments. However only Ist & 2nd installments viz. Rs. 39,55,050/- &
Rs. 7,91,010/- (Total Rs.47,46,060/-) were realized in LESCO Account.
 (vii) In 3/2010 the consumer vide letter dated 25-3-2010 (CP-202/1) refused to
make further payment of installments on the plea that demand of security as
per enhanced rates is not justified, therefore excess amount deposited by
him may be refunded.

(viii) In this regard the consumer also filed complaint with NEPRA for which
detailed reply was submitted by CSD vide No. 59121-27 dated 22-12-2010
(F/A). But NEPRA while deciding the case against LESCO ordered to
refund the excess amount recovered over the legitimate amount of
security deposit payable at the time of payment of capital cost, without
any mark up and submit the compliance report within 60 days (F/B).

(ix) In 6/2012, in order to regularize the extended load running on the system
EOL from 515 kW to 1500 kW was approved vide No. 21338-46 dated
20-6-2012 (CP-259) which was implemented vide SJO No. 290 dated 24-
12-2012 (CP-278).

(x) LESCO also filed Writ Petition in Hon’able Lahore High Court against the
above orders of NEPRA (F/C).

(xi) Hon’able Lahore High Court vide Order dated 31-3-2017 has dismissed
the case due to non-prosecution (F/D). Orders of Hon’able Lahore High
Court is not yet received in this office. However a copy of the same has
been supplied by the consumer alongwith his application on 5-1-2018.

(xii) This office vide letter No. 946-47 dated 24-1-2018 requested CSD that the
case may be dealt with at his level being policy matter regarding
enhancement of rates of security. But CSD again forwarded the file to
P&D Directorate for further proceeding.

Keeping in view the position explained above, the case may be

forwarded to Director Legal for legal opinion please.

Assistant Manager (P&D) Dy. Manager (P&D)

Chief Engineer (P&D)