CCI closes case against BEST Undertaking

The Competition Commission has decided to close a case of allegations of unfair business practices against Mumbai's BEST Undertaking related to supply of electricity.
The case relates to an individual seeking to change the electricity supplier from BEST, a local government body, to Tata Power. However, the latter responded by saying that the request could not be acceded since the rules for changing electricity suppliers was not applicable to BEST.
Apart from rejecting the allegation, the Competition Commission of India (CCI) also declined to entertain the complainant's request for compensation.
The compensation was sought on the grounds that there has been "substantial delay" in deciding on the application before BEST.

"So far as the prayer made by the authorised representative of the informant for seeking compensation is concerned, the Commission notes that the same is beyond its jurisdiction.
"The informant may avail such remedies before appropriate forum for this purpose, if so advised," CCI said in its order dated September 12.

Earlier, the Commission had closed the case which was first filed in 2010.
In its previous order issued in January 2012 closed the matter while giving the liberty to the informant to approach the Commission again, if so she desired, after a final view was taken by the Appellate Tribunal for Electricity (APTEL).

"Subsequently, it appears that the matter was carried to the Supreme Court of India which has recently delivered its verdict on May 8, 2014. Accordingly, the informant has filed the present application seeking re-opening of case," the latest order said.
According to CCI, it is apparent that though Supreme Court recognised the exemption granted to a local authority under the provisions of Electricity Act, 2003.
The local authority is exempted from providing "its network to other distribution licensee for wheeling electricity by way of open access, yet the Court reiterated the universal service obligations of distribution licensees under the said Act to provide electricity to willing consumers from their own networks and here no special dispensation was found to be provided for the local authorities," the CCI said.