CCI rejects complaint against Haryana discom

Fair trade regulator CCI has rejected charges of abuse of market dominance against Dakshin Haryana Bijli Vitran Nigam (DHBVN), a power distribution company in that state.
The complaint was also filed against Haryana Electricity Regulatory Commission (HERC) and the state government.
It was alleged that even though fuel prices have been declining, DHBVN kept on increasing the fuel cost surcharge adjustment (FSA).
FSA, which is determined on the basis of any fuel price variations incurred on the input costs in the supply chain of electricity, is passed on to the consumers.
Further, it was alleged that DHBVN has been imposing differential FSA based on the quantity of power consumed and thereby discriminating between the consumers.

For the case, the Competition Commission of India (CCI) considered the 'market for distribution of electricity in the licensed area of OP-1 (DHBVN) in the State of Haryana' as the relevant one.

DHBVN is an electricity distribution company owned by the Haryana government and is licensed by HERC to exclusively supply electricity in nine districts of the state.
Dismissing the complaint, CCI said, "... No fact or figure has been provided to substantiate the purported decline in the price of fuel used for power generation leading to a decline in the cost of power generation."
It added: "In the absence of any cogent material supporting these claims, it would be difficult to construe any unfairness regarding the quantum of FSA levied."

On allegations of discriminatory pricing, the regulator said the way in which customers are classified for charging FSA "appears to have economic justification based on market segmentation and does not amount to discriminatory conduct".
Further CCI said, as DHBVN charges FSA, as per the regulations framed by HERC, any person aggrieved by the decision of a state electricity regulatory commission could appeal such decision before the Appellate Authority under the Electricity Act, 2003.
The complaint was filed by one Anand Parkash Agarwal, residing in Gurgaon, under Section 4 of the Competition Act, which pertains to abuse of dominant market position.