CCI Closes DVC Complaint Against West Bengal Power Distributor WBSEDCL Over Anti-Competitive Tariffs

The Competition Commission of India (CCI) has closed an Information filed by Damodar Valley Corporation (DVC) against West Bengal State Electricity Distribution Company Limited (WBSEDCL), finding no prima facie case of contravention of the Competition Act, 2002.

DVC alleged that WBSEDCL used its dominant position in the wider electricity distribution market in West Bengal to strengthen its presence in the DVC Command Area, where the two utilities compete.

It also accused WBSEDCL of predatory and discriminatory pricing, claiming that the pricing strategy led to consumer migration from DVC and caused it a loss of around ₹121 crore.

A coram comprising Chairperson Ravneet Kaur, Member Sweta Kakkad and Member Deepak Anurag held that the material on record did not warrant an investigation by the Director General. The Information was accordingly closed under Section 26(2) of the Act.

The dispute followed WBSEDCL's takeover of the electricity distribution business of Durgapur Projects Limited (DPL) from January 1, 2019. The West Bengal Electricity Regulatory Commission (WBERC) later permitted WBSEDCL to charge competitive tariffs in the erstwhile DPL area, subject to a maximum ceiling.

DVC alleged that WBSEDCL extended the competitive tariff regime beyond the DPL area through notifications issued in 2019 and 2023. It claimed that WBSEDCL was charging below its average cost of supply in the DVC Command Area to attract DVC's consumers. DVC calculated the average cost of supply at about ₹7.19/kWh against an average tariff of ₹4.835/kWh.

WBSEDCL denied the allegations and maintained that its competitive tariffs were permitted under the Electricity Act, 2003 and WBERC's tariff regulations. The CCI rejected its jurisdictional objection, observing that the roles of the sectoral regulator and competition regulator were complementary.

For assessing dominance, the CCI defined the relevant product market as the “market for distribution of electricity” and the relevant geographic market as the “DVC Command Area in the State of West Bengal.” It noted that DVC and WBSEDCL operate there, with India Power Corporation Limited present in certain parts.

WBSEDCL's roughly 60% share across West Bengal therefore did not establish dominance in this narrower market. DVC's share in the DVC Command Area was 79.19% in 2019-20 and 69.06% in 2024-25, compared with WBSEDCL's 12.42% and 26.60%, respectively.

The Commission nevertheless examined the allegations. It found that WBSEDCL recovered its average variable cost throughout the relevant period and therefore found no indication of predatory pricing. It also found no evidence that competitive tariffs were selectively offered to particular consumers or that similarly situated consumers were charged different prices.

On leveraging and denial of market access, the CCI noted that WBSEDCL had been present in the DVC Command Area since 1955 and that DVC remained the largest distribution licensee there.

There was no material showing that WBSEDCL prevented consumers from dealing with DVC, imposed exclusivity or otherwise restricted DVC's ability to compete.

The CCI ruled that “the said allegations of denial of market access and leveraging of dominant position are unfounded.”

It also found that DVC had not substantiated any agreement, arrangement, understanding or concerted practice involving WBSEDCL to support its Section 3 allegation. The Information was accordingly closed.