Presentation By Prayas Energy Group, India prayaspune/peg
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Transcript of Presentation By Prayas Energy Group, India prayaspune/peg
Prayas Energy Group, India
Transparency in Electricity Service Delivery: Billing, Quality of Service
and consumer issuesBishkek, September 2011
PresentationBy
Prayas Energy Group, Indiawww.prayaspune.org/peg
Prayas Energy Group, India
‘Prayas’ means ‘Focused Effort’
Research based, policy advocacy Voluntary
Org.
Based at Pune, India
Focus on protection of “Public Interest” in
electricity sector
About Prayas …
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Activities:• Research & intervention (regulatory, policy)• Civil Society training, awareness, and support
www.amulya-reddy.org.in
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Interaction Plan
• Introduction and context
• Transparency provisions in Electricity service delivery with respect to: – Service quality: Standards of performance, billing and
metering systems, etc.– Grievance redressal mechanism– Continuous monitoring and support
• Challenges
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Consumer Expectations & Agitations
Adequate & timely availability of power
Good Service Quality
Reasonable Tariff
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Path for meeting consumer expectations
Power Purchase
and Capex Planning
Setting ‘right’ Tariff
Legal mandate for ensuring
supply & service quality
Transparent norms &
standards of performance
Grievance redressal
mechanism
Continuous monitoring and
oversight
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No Silver bullets
• Supply adequacy (presumably at reasonable cost)
• Timely and prudent capital expenditure • Financial stability & viability of distribution
sector Do no automatically guarantee good service quality
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Need for specific framework and provisions
• Legal and regulatory mandate to ensure certain level of supply and service quality• Transparent norms and standards for
performance of distribution companies• Grievance redressal mechanism for consumers• Continuous monitoring and oversight by
competent authority
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India’s approach and regulatory experience, so far
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Indian Power Sector StructureRegulator
Generators
Transmission and Load Dispatch
Distribution Companies
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Legal provisions related to supply and service quality…1
• Electricity Act 2003– “Section 57.(1) The Appropriate Commission may,
after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees.”
– “Section 59 (1): ... furnish to the Commission the following information, namely:-• (a) the level of performance achieved under sub-section
(1) of the section 57;• (b) the number of cases in which compensation was made
under subsection (2) of section 57 and the aggregate amount of the compensation.”
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Prayas Energy Group, India
Legal provisions related to supply and service quality…2
• Electricity Act 2003– “Section 59 (2): The Appropriate Commission shall
at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1).”
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Prayas Energy Group, India
Standards of performance• MERC (Standards of Performance of Distribution
Licensees, Period for Giving Supply and Determination of Compensation) Regulations, 2005– Period of giving supply– Quality of supply and system of supply– Restoration of power supply, in case of faults– Metering, reconnection– Consumer service norms, determination of
compensation
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Prayas Energy Group, India
Excerpt of MERC Standards of Performance published in 2005
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Prayas Energy Group, India
Supply Code provisions
• MERC (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005– Methods of recovery of electricity charges – Intervals for billing– Disconnection procedure– Wiring of consumer’s premises– Basis for categorization of consumers into a tariff
category
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Prayas Energy Group, India
Excerpt of MERC Supply Code published in 2005
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Prayas Energy Group, India
Legal provisions for grievance redressal
• Section 42:–Mandates utilities to establish forum for
redressal of grievances of the consumers– Establishment of Ombudsman as highest
authority for consumer grievance redressal• Provisions of Consumer Protection Act 1986,
override provisions of Electricity Act 2003
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Prayas Energy Group, India
Three tier grievance redressal mechanism structure• Each licensee to establish IGRC &
CGRF• CGRF
– Consists of Independent Chairperson, utility’s representative, and consumer representative
– Should decide the matter within 2 months
• Ombudsman– Appointed by commission– Only consumer can appeal against
the decision of CGRF to Ombudsman
– Orders available on website17
Consumer’s grievance
Internal Grievance Redressal Cell (IGRC)
Consumer Grievance Redressal Forum (CGRF)
Ombudsman
Prayas Energy Group, India
Maharashtra Ombudsman website screenshot
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Prayas Energy Group, India
Continuous monitoring and oversight
• Steps taken by Maharashtra ERC– Publishes all CGRF and Ombudsman orders on
website– Sou-moto hearings on important cases which
affect large number of consumers– Workshops for assessing CGRF performance and
issues faced by them– Amending regulations based on feedback from
consumers and other stakeholders
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Orissa State ERC has set-up monitoring committee for ensuring improvement in service quality
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Barriers to be overcome
• Lack of awareness amongst consumers as well as utility staff
• Utilities may not perceive themselves as service providers
• Cost of intervention could be too high for the poor• Utilities at times resort to litigations instead of
complying with CGRF/ombudsman orders• Need for effective monitoring mechanisms/systems
for ensuring good supply and service quality
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Prayas Energy Group, India
Role of Civil Society
• Increasing awareness and participation• Consumer education through booklets and
pamphlets and other media• Establishing consumer advocacy cells,
consumer groups/organizations that work on electricity issues
• Can make use of provisions under the Right to Information Act if the utility is not cooperating or unwilling to share information
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