Power companies overcharging 90% of consumers:
CCI
Consumers all
over the country could benefit from a landmark investigation by the competition
regulator, which found that the capital’s power distribution companies are
overcharging 90% of their customers. The investigation by the Competition
Commission of India (CCI) found that most of the electric meters put up by BSES
and NDPL are ‘fast running’. The CCI has served notices on the distcoms. The distcoms do not
allow their customers to install meters of their choice, thereby abusing their
dominant market position, the CCI investigation revealed. The CCI is the
country’s regulator in matters of competition and fair price delivery. While
only two distcoms operating in the capital have come
under the regulator’s lens, the findings of investigation will have a
nation-wide impact in the way electricity companies service consumers. The Anil
Ambani Group firm BSES has challenged the CCI’s report, which says its customers are deprived of the
liberty to use electricity meters of their choice. “The allegations regarding
not allowing consumers the option to install their own meters
are not correct, as the same is provided under law. BSES has publicised this on its website; distributed lakhs of pamphlets; issued newspaper ads, and also inserted
this option in application forms for availing new connection,” said a BSES
spokesperson. ‘Choose your own meter’ is a widely publicised
campaign by BSES, he said. He said meters bought and installed by BSES meet the
relevant BIS standards and guidelines of the Central Electricity Authority. The
Tata Group-owned NDPL, however, could not be reached
for comment. The CCI investigated the case based on a complaint filed in September
2009. The regulator has issued show cause notices to the distcoms
after examining the report of its director general (investigation), which found
evidence against them for misusing their dominant position and entering into
anti-competitive agreements. “The investigation has a much wider implication,
as the power distribution mechanism is largely monopolistic across all states,”
said a senior CCI official, who asked not to be named. In