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SUBMITTED BY RADHE SHYAM BEHRA (2012225) RADHIKA AGARWAL RAHUL DEV SINGH RAHUL GHOSE RAHUL MISHRA (2012226) (2012227) (2012228) (2012229)
Introduction
A world bank report has stated that the biggest problem of doing business in India is the lack of infrastructure.
During the reforms of 1990s, the electricity sector witnessed major policy changes and regulatory initiatives.
The electricity sector is composed of 4 major processes- generation ,transmission , distribution and retailing
Open Access
The basic objectives of providing open access were the following:
To invite private investment in the power sector. To promote competition among the generating companies. To facilitate consumers to buy power directly from the generators. To lead to the availability of cheaper and reliable power supply.
Abuse of Dominance
Abuse is stated to occur when an enterprise or a group of enterprises uses its dominant
Independent body at central & state level Market surveillance was needed to perform by regulatory authority Ambiguity between CCI and sector regulators
LEGISLATIVE GAPS:
Section 49
Section 64 Section 174
SUGGESTIONS:
The Competition Commission of India should proactively participate in discussions on the competition related issues before the electricity regulators. There should be better coordination between them, to ensure that competition concerns are addressed properly. In future, the Competition Act, 2002, may be amended with an enabling provision for cooperation Between the Competition Commission and the Electricity Regulatory Commissions so as to prevent arbitrariness. As long as there are competition authorities and sector regulators present, they need to work together and understand each other to minimize conflicts.
De licensed generation of power. Open access of transmission lines. Independence to choose distribution. Demand supply gap. Conflicts between SLDCs over transmission lines.
REGULATORY ISSUES:
Political influence over allocation of power. Industry biasness. Works for governments interest.
Electricity cannot be stored economically (Just-in-time). Lack of open access- lack of access to transmission networks and issues with pricing of transmission capacity. Collective dominance rather than single firm dominance.
Product homogeneity. Anticipate one anothers behaviour. Aligning their conduct in the market to maximise profits.
Relevant cases
Karnataka (2010): JSW Power was stopped from proceeding with sale of power to a Tamil Nadu state buyer. CCI is issuing a notice to three state-owned oil marketing companies (OMCs) on a probe on whether they use there collective dominance to fix petrol prices. CCI also imposed a penalty of Rs 630 crore on real estate giant DLF for abusing its dominant position.
CCI had probed the aviation sector but said it could find no evidence for the charge.
Thank you