Competition Commission rejects complaint against MSEDCL

Competition Commission has dismissed allegations that Maharashtra State Electricity Distribution Company Ltd (MSEDCL) abused its dominant position with regard to distribution of power in different parts of the state.
The ruling comes after nearly three years of the complaint being filed against Maharashtra State Electricity Board Holding Company and its three subsidiaries, including MSEDCL.
Maharashtra State Power Generation Company Ltd (MSPGCL) and Maharashtra State Electricity Transmission Company were the other two subsidiaries.
Following the complaint by trade body Vidharbha Industries Association, Competition Commission of India (CCI) had ordered a detailed probe by its Director General (DG).
In a 27-page order passed last week, the watchdog rejected the allegations of unfair business practices made against MSEDCL.

It was alleged that MSEDCL was imposing "unfair prices" on the consumers and "denying market access" to other power generating companies for distribution of electricity.

The DG, which submitted its report in November 2015, too had not found any contravention of the provisions of Section 4 of the Competition Act.
Section 4 pertains to abuse of dominant market position.
For the case, CCI considered market for the 'provision of services for distribution of electricity in the State of Maharashtra except Mumbai' as the relevant one.
According to the regulator, though MSEDCL is in a dominant position in the relevant market, allegations of abusing dominant position against the electricity distribution firm "have not been substantiated and violation of Section 4 of the Act is not established".

Among others, the CCI said the complaint stating the competition in electricity generation sector has been affected by MSEDCL buying power from MSPGCL has not been substantiated.
The allegation that denial of open access by MSEDCL to its consumers cannot be construed as violation of competition norm, it added.