Competition Commission rejects complaint against 7 discoms

Competition watchdog CCI has dismissed a complaint against seven power distribution companies across the National Capital, Punjab, Haryana and Himachal Pradesh, saying issues related to Open Access to electricity are to be decided by respective state regulators.
The allegations were made against seven discoms, including three from the National Capital -- Tata Power Delhi Distribution Ltd, BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd.
Others are Punjab State Power Corporation Ltd, Uttar Haryana Bijli Vitran Nigam Ltd, Dakshin Haryana Bijli Vitran Nigam Ltd and Himachal Pradesh State Electricity Board Ltd.
The complaint was filed by the Open Access Users Association where it was also alleged that the discoms have unduly influenced and made unreasonable suggestions to their respective State Electricity Regulatory Commissions in order to increase various charges for Open Access.

Noting that there is no competition issue involved in the factual matrix disclosed in the information, CCI said the "present case is essentially related to the regulatory functions discharged by the State Regulatory Commissions in respect of fixation of tariffs".
Under the Electricity Act, open access refers to non- discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in power generation.

In a recent order, Competition Commission of India (CCI) noted that the charges for Open Access are to be decided by the respective state commissions as per the Electricity Act and any issues would be dealt by the state electricity regulator and the appellate authority.

No case is made out against the seven entities for contravention of the Competition Act, it added.
"The gravamen of the information essentially centres around the increase in open access charges effected by the respective State Electricity Regulatory Commissions of Delhi, Punjab, Haryana and Himachal Pradesh resulting into alleged denial of market access, creation of entry barriers, foreclosure of competition and limiting consumer choice in the market," CCI observed.