Consumer protection and service quality improvement mechanisms Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan Delegates November 16-18, 2010, Pune, India Prayas Energy Group

Agenda Overview Legal and regulatory framework Effectiveness and shortcomings 16 Nov 2010Prayas EGI Workshop2

Consumer Expectations & agitations 16 Nov 2010Prayas EGI Workshop3 Adequate & timely availability of power Good Service Quality Reasonabl e Tariff

Service and supply related issues Poor service quality: Billing errors, metering related issues, un-timely fault resolution, etc Un-planned load Shedding, poor quality of supply, etc Lack of information/clarity about procedures such as getting new connection, change in name or connection type and so on Lack of access: Half the households do not get electricity which is a high quality, cost effective form of energy  Poor and small consumers most effected 16 Nov 2010Prayas EGI Workshop4

Legal provisions related to supply and service quality 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.” “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).” 16 Nov 2010Prayas EGI Workshop5

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 Nov 2010Prayas EGI Workshop6

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 16 Nov 2010Prayas EGI Workshop7

Excerpt of MERC Standards of performance published in Nov 2010Prayas EGI Workshop8

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 16 Nov 2010Prayas EGI Workshop9

Excerpt of MERC Supply Code published in Nov 2010Prayas EGI Workshop10

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 website 16 Nov 2010Prayas EGI Workshop11 Consumer’s grievance Internal Grievance Redressal Cell (IGRC) Consumer Grievance Redressal Forum (CGRF) Ombudsman

Ombudsman website screenshot 16 Nov 2010Prayas EGI Workshop12

Forum wise status of compliance of orders Sr. no. Name of Forum No.of orders issued No.of orders issued in favour of consumers No. of orders complied. 1TATA POWER 4 2 ( 50% ) 2 ( 100% ) 2BES&T U ( 100% ) 3RELIANCE18278 ( 43% ) 78 ( 100% ) 4MULAPRAVAR A 40 ( 0%)NA 5NAGPUR (U) ( 75% )218 ( 93% ) 6NAGPUR (R) ( 57% ) 71 ( 100% ) 7AURANGABAD ( 92% )217 ( 99% ) 8AKOLA ( 88% ) 15 ( 100% ) 9LATUR ( 73% ) 200 ( 99% ) 10BHANDUP ( 57% ) 91 ( 58% ) 11NASHIK ( 76% ) 104 ( 100% ) 12KOLHAPUR ( 62% ) 97 ( 45% ) 13PUNE ( 47% ) 35 ( 95% ) 14RATNAGIRI ( 71% )28 ( 93% ) 15KALYAN ( 82% )182 ( 85% ) TOTAL:2413 (100%)1689 (70 %)1446 (86 %) 16 Nov 2010Prayas EGI Workshop13

Regulatory Role in protecting consumer interests Setting reasonable and affordable tariff that reflects supply and service quality Ensuring adequate power availability Monitoring of supply and service quality Ensuring compliance of utility with various legal provisions and regulations Conducting due public processes for all the above functions Increase awareness and transparency encourage public participation 16 Nov 2010Prayas EGI Workshop14

Regulatory mandate Defining norms and standards for service quality that utility must comply with Establishing grievance redressal mechanism that is simple, easy to access, quick in response and economical for consumers Establish monitoring mechanisms to ensure compliance of standards and regulations and effective grievance redressal 16 Nov 2010Prayas EGI Workshop15

Steps taken by MERC Load shedding protocol Equitable distribution of shortage c Ceiling on number of load shedding hours in a given area based on losses Public hearings for deciding the protocol 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 16 Nov 2010Prayas EGI Workshop16

Role of Civil Society Increasing awareness and participation Consumer education through booklets and pamphlets 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 16 Nov 2010Prayas EGI Workshop17

Barriers to be overcome Lack of awareness amongst consumers Utilities do not perceive themselves as service providers Cost of intervention could be too high for the poor Utilities prefer litigations in High court instead of complying with CGRF/ombudsman orders Lack of effective mechanisms/systems for supply and service quality monitoring 16 Nov 2010Prayas EGI Workshop18

Comments and discussion 16 Nov 2010Prayas EGI Workshop19