A PILOT PROJECT ON CAPACITY BUILDING ON ELECTRICITY REFORMS IN BANGLADESH, INDIA AND NEPAL (RESA PROJECT) Findings of the Project RESA — Nepal Dhrubesh Regmi Presented at: Regional Conference Kolkata, India

Outline of the presentation General overview of Nepali power sector Review of RESA Project Way forward

Background: Power Sector in Nepal Energy as the backbone of an economy High dependence of the Nepali economy on traditional sources of energy, with electricity consumption at a minimum level Low level of exploitation - a mere 0.67 per cent (i.e., MW) of its total generation capacity Inadequacy of electricity Only 45 per cent of Nepali households have access to electricity and consumers are being faced with host of problems 89% of the consumers are unaware about the ongoing electricity reform process and 72% of them feel that they are ignorant on electricity related issues (RESA Baseline Survey Report, 2008)

Lack of competition despite the introduction of private sector by the government in 1992 Monopoly of current regulatory framework: Nepal Electricity Authority (NEA), Department of Electricity Development(DoED), Electricity Tariff Fixation Commission (ETFC) Political-economy behind power sector development Lack of consumer awareness and space for consumer participation

Project Brief Overall objectives To increase long-term capacity of civil society Organisations (CSOs), to improve consumers’ representation as a measure to enhance effectiveness of regulatory regimes in electricity sector in Bangladesh, India and Nepal. Project countries 1. Nepal 2. India 3. Bangladesh Donor agency: NORAD

RESA Nepal SAWTEE and it’s local partners 1.Ilam Chamber Of Commerce And Industry, Ilam 2.Forum For Protection Of Consumer Rights Nepal, Morang 3.Consumer Forum Nepal, Sunsari 4.Forum for Protection of Consumer Rights Nepal, Kathmandu 5.Consumer Forum Nepal, Lalitpur 6.Forum for Protection of Consumer Rights Nepal, Parsa 7.Community Radio Madan Pokhara, Palpa 8.Forum for Protection of Consumer Rights Nepal, Rupandehi 9. Banke UNESCO Club, Banke 10. Forum for Community Sector Support Programme, Dailekh

Project Activities Project Launch & Training Perception Survey of the Partner CSOs The Local Inception Workshop Consumer Base Line Survey and Field Research Reference Group Meeting- I & II Territorial Training Grassroots Interface Meetings – I & II Advocacy Seminar Final Consumer Survey Capacity Building Discussion Forum Regular Radio and Television Programme

Consumers’ view Increased awareness level leading to demand side management Consumers feel the need to be informed about existing rules and regulations, general safety measures and regulatory reforms They have started sensing the importance of interactions and consultations by the policy makers and utility providers with the general public They seek for avenues to ensure effective participation for power sector reform

Steps taken by consumers after attending meetings

Recommendations for Power Sector Reform In Nepal (observations from project activities) Unbundling– production, distribution and transmission Organize awareness, sensitization and interaction programs on electricity issues Create space for consumer participation in decision making/regulatory process through public hearing, consumer representation and so on Focus on reservoir-type project Focus on meeting domestic demand, but nation plagued with export mentality Break free from political intervention and legal and technical monopoly of utility provider Rational review of electricity tariff Amendment of Electricity Act, 1992 to increase the participation of consumers in regulatory decision making and encourage investments for hydro power development

Project Outcomes Assessment of the consumer status in regard to electricity sector of Nepal (BS & FCS) Improvement in consumer awareness, habit and some remedies to their concerns (GIMs) Establishment of harmonious relationship between utility providers and consumers (GIMs) Trained and sensitized CSOs (TTPs) Interaction and partnership among experts, government and non-government organisations, journalists, policy makers, utility providers, related to power sector created (LIW& NAS) Consumers concerns in electricity sector of Nepal discussed and highlighted among all stakeholders including media (LIW & NAS)

Way Forward Continuity to the RESA project and if possible expansion of area coverage Design project in line with the specific environment of a country Make avenues for ensuring effective participation of the informed consumers

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