CCI, CERC differ over anti-competition norms in power sector

NEW DELHI: Differences have cropped up between the electricity regulator CERC and the Competition Commission over keeping a tab on anti-competitive practices in the domestic power sector.

The issue relates to the draft regulations for prevention of adverse effect on competition in the power sector issued by the Central Electricity Regulatory Commission (CERC) in August.

Fair trade regulator Competition Commission of India (CCI) is concerned about CERC issuing such norms.

A CCI official said all matters related to competition come under it.

Meanwhile, a CERC official said the draft norms were prepared on the basis of Electricity Act 2003, that allows CERC to look at anti-competitive issues in the power sector.

"We don't want to get into a kind of conflict with the Competition Commission," the official said. If there are differences, both entities would discuss and find a solution, the official added.

It could not be immediately ascertained whether CCI and CERC have communicated with each other towards resolving the differences.

The Electricity Act's Section 60 relates to market domination.

As per the clause, the appropriate commission may issue such directions to a licensee or a generating company, if they abuse dominant position or get into a combination that is likely to cause or causes an adverse effect on competition in electricity industry.

CCI has the mandate to eliminate practices that adversely impact competition, among others. These include abuse of dominant position by an entity and combinations that hurts competition in a particular market.