Pesco ordered to reverse increase in Right of Way charges

ISLAMABAD: The Com­petition Commission of Pak­istan (CCP) has issued an order in favour of Nayatel and CyberNet against Peshawar Electric Supply Company (Pesco) for abusing its dominant position.

Pesco was dominant in the market for “Right of Way (ROW) through electric poles availed by different types of cable service providers in the geographic boundary of Peshawar,” as it solely owned/managed the poles and there were no other substitutes.

Complaints were lodged by Nayatel Pvt Ltd and Cy­­ber Internet Services (Pvt) Ltd that the ROW charges were raised from Rs10 per pole to Rs100, for the internet service providers while the basic TV cable operators were charged Rs10 per pole.

The complainants added that it was done without any legitimate justifications.

The CCP annulled Pesco’s pole renting policy after the initiation of the show-cause proceedings.

However, as the same inter alia related to an essential public utility/ROW and there were no other means available for the complainants to provide cable, internet, and telephony services to end consumers, thus, negatively impacting consumers and other stakeholders.

The CCP order stated that, Pesco was found to have ab­­used its dominant position. It also stated that Pesco’s conduct was also discriminatory as admittedly decommissioning noti­ces related to the removal of cables were only sent to the complainants and not others like the basic tv cables.

The CCP has directed Pesco to restore access and provide the ROW to Nayatel and Cybernet, on fair, reasonable and non-discriminatory terms.

The CCP obser­ved that fee has to be equal for all cable installations.

If Pesco did not abide by the order it will have to pay a fixed penalty of Rs75 million and an additional penalty of Rs0.5m for every day after the first of such violations or the subject abuse had occurred.