The Competition Commission of India (CCI) has found leading power distributors ? BSES Rajdhani Power, BSES Yamuna Power and North Delhi Power Ltd (NDPL) ? of misusing their dominant positions by disallowing consumers from using other BIS approved meters.
As per the current norms, a consumer is bound to purchase the meter manufactured by these power distributors. The commission has ruled that consumers should be free to choose any meter they desire.
According to sources, the power distributors have breached sections 3 and 4 of the Competition Act, 2002. The commission has already sent the notices to BSES and NDPL.
The commission has also found that a whopping 90% of the meters installed by these power companies are faulty and show a reading that is 2.5% higher. Interestingly, this is not the first time power distributors have been pulled up for using faulty meters. A Delhi government inspection report had stated in 2009 that 90% of the electric meters which were checked in the National Capital Territory (NCT) of Delhi were running 2.5% higher than the error margin limit and were thus leading to the overcharging.
The investigation by the commission was taken up after a complaint was filed last year by a Delhi-based advocate Neeraj Malhotra. The complaint, a copy of which is with FE, said, ?the above enterprises purchase and installed the meters on their own and the consumers are not allowed to procure and buy the meters of BIS standard manufactured of any of the manufacturer for installing the same.?
Based on the complaint, the commission had called a meeting of its members and prima-facie found evidence of anti-competitive behaviour and directed its director-general KK Sharma to conduct a probe. Sharma refused to comment, when contacted.
BSES said in an email response, ?The allegations regarding not allowing consumers the option to install their own meters is not correct as the same is also provided under law. BSES, in compliance of the same, has publicised this on its website; distributed pamphlets; issued newspapers ads and also inserted this option in application forms for availing new connection. Moreover, ?Choose your own meter?, has been a widely publicised campaign at BSES.?