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JAN 31 2015

Competition Commission rejects complaint against Tata Power

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 31st JAN 2015

Fair trade watchdog CCI has rejected Brihan Mumbai Electric Supply and Transport's (BEST) complaint that Tata Power indulged in anti-competitive practices with regard to transmission of electricity.

BEST is an undertaking of the Municipal Corporation of Greater Mumbai.

Rejecting the complaint, CCI said there is no "prima facie" evidence that Tata Power violated competition norms."It appears from the facts of the case that the informant is aggrieved by the alleged anti-competitive conduct of the opposite party (Tata Power) in the transmission of electricity to it and unilaterally shutting down the transmission points which transmits electricity to the informant.

"Thus, the issue pertains to transmission of electricity only," Competition Commission of India (CCI) said in its order order dated January 29.

BEST also has the licence to distribute electricity only in the island city of Mumbai (the area from Colaba upto Mahim and Sion) and has no operation elsewhere.

In this case, "services of transmission of electricity in the city of Mumbai," has been considered as the relevant market.

BEST had also alleged that since it is a competitor as well as a consumer, Tata Power intentionally abused its dominant position by unilaterally putting a brake on the electricity supply to it Informant on September 2, 2014 which caused serious load shedding within the island city of Mumbai.

It was also alleged that Tata Power has been responsible for developing the said constraints in transmission network to create a monopolistic market for its generation business."Having perused the material on record, the Commission is of the view that the same are not sufficient to prove this allegation," CCI said in the order.

Tags

Bombay Electricity Supply and Transport Competition Commission Of India Mumbai Power Tata Power Electricity Consumer India

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