PRAYAS ENERGY GROUP Clean Energy, Good Governance & Electricity Regulation 20 – 21 May 2010 Cape Town

Enhancing Regulatory Governance to Promote Sustainable Development

What is Regulation? We see it as: “Ways and means employed by the society to ensure that rational decisions (from society’s point of view) are made.”

Importance of Regulation Mandate to improve sector performance and services –Not just in the short / medium term, but also in the long term Authority –Tariff, Power purchase, Investments, Grid connectivity

Regulatory Challenges Need to deal with multiple objectives –Adequacy and reliability of supply, reasonable tariff, service quality Uncertainty and lack of adequate information about CE options –Costs, potential, reliability High stakeholder expectations

Opportunities Growing awareness and willingness to act amongst policy makers Significant investor interest Wealth of experiences and knowledge sharing Technological developments and rapidly reducing costs offer new synergies

Enhancing Regulatory Governance Strengthening capacity –Regulators, Staff, Consumer groups Improving transparency and information availability Effective public participation processes –Resources, Understanding regulatory process Accountability –Project developers, utilities, regulators