Feb 16, 2018

CCI dismisses complaint against Kerala State Electricity Board Limited*

On December 29, 2017, CCI dismissed information filed by the proprietor of Paulson Park Hotel (‘Proprietor’) in Kerala against the Kerala State Electricity Board Limited (‘KSEBL’) alleging the contravention of Section 4 of the Act by way of an order under Section 26(2) of the Act.The Proprietor’s primary grievance related to the application of an incorrect tariff by KSEBL in its supply of electricity to its hotel. The Proprietor alleged that its hotel was entitled to the supply of electricity at industrial tariff rates as it had been classified as a star hotel by the Tour- ism Department from August 1, 1988 for a period of three years. While the Proprietor’s application for renewal of star classification was pending, KSEBL raised a bill charging the Proprietor’s hotel at a higher tariff under LT-VII category instead of the applicable LT-IV category.CCI noted that the Proprietor had challenged KSEBL’s conduct before the Kerala High Court who had issued decisions in its favour. However, despite the Kerala High Court issuing an order in favour of the Proprietor, KSEBL continued to raise excessive charges on the Proprietor’s hotel for the supply of electricity. When the Proprietor failed to pay the bill in light of the decision of the Kerala High Court, KSEBL disconnected the power supply and refused to reinstate the supply despite the Proprietor’s request for re-connection. KSEBL’s conduct was alleged by the Proprietor to be unfair and discriminatory and in contravention of Section 4 of the Act.On the basis of the information filed by the Proprietor, CCI held that there did not appear to be any competition law issue at hand. CCI also observed that the information appeared to be a case of forum shopping by the Proprietor, and accordingly closed the matter.
*Case No. 74 of 2017.

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