Macro Implications of Micro-Participation: Participatory Management of Electricity Distribution in Eastern India Ashwini K Swain IPPG PhD Workshop 3 March 2009

Research Context The Problem:  After six decades of public electrification, half of the population in India lives in dark.  The problem is growing worse as current rate of electrification has failed to keep pace with population growth.  Non-uniform and inefficient service delivery Source:  Centralised planning, resource allocation and implementation  Long route of accountability Proposed Solution: by putting poor people at the centre of service provision: by enabling them to monitor and discipline service providers, by amplifying their voice in policy making, and by strengthening the incentives for providers to serve the poor. (World Bank 2003: 1)  decentralisation and users’ participation through building micro-institutions

Research Questions  Can decentralisation and users’ participation ensure efficient and effective electricity service delivery in rural India?  Does participation in the micro-institutions has any democratic outcome?  Does the context, under which participation takes place, affect the outcomes? Hypotheses  Decentralisation and users’ participation in electricity delivery will contribute to improvement in efficiency and effectiveness of the service delivery.  Participation in the micro-institutions will enhance political efficacy of the participants and foster the civic values they hold.  The process of users’ participation and its outcomes will be affected by the context under which participation takes place.

Methodology:  Case study approach  Methods of data collection  Semi-structured interviews  Observations  Analysis of documents  Interpretative and qualitative analysis

Case Studies Micro-Privatisation of Electricity Distribution in Orissa:  First step, Village Electricity Committees were established to ensure participation of users  Second step, putting a micro-entrepreneur (franchisee) between the users’ committees and the service provider  Two patterns found: one, users’ committee and franchisee established (micro- privatisation); second, users’ committee established, but served by the utility (users’ participation) Electricity Cooperative in Sundarbans, West Bengal:  Each plant has a Beneficiary Committee including all the users served by the plant  Beneficiary committees and the local government (Panchayat Samiti) constitute the cooperative  WBREDA remains the guiding body

Inefficiencies in Electricity Delivery 1.Rampant Electricity Theft (Hooking, Meter tampering, Billing irregularities) 2.Lack of End-Use Efficiency (No use of energy efficient products, Lack of load management) 3.Low Revenue Realisation (Lack of willingness to pay, Irregular collection, Low collection efficiency) 4.High Technical Loss (Poor maintenance, Lack of manpower, Lack of funds) 5.Poor Quality of Supply (Load shedding, Breakdown, Low Voltage)

Sources Orissa (Micro- Privatisation) Franchisee & Users’ Committee Orissa (Users’ Participation) Users’ Committee Sundarbans (Cooperative) Cooperative & Beneficiary Committee 1  Hooking  Meter tampering  Billing irregularities  Completely stopped  Few cases  Completely checked  Completely stopped  Few cases  Completely checked  Did not exist  Not Applicable  Did not exist 2  No use of energy efficient products  No load management  Use of CFL in around 50% households  Yes, during evening  Use of CFL in around 50% households  Yes, during evening  Use of CFL (80%) and other energy efficient products  Not applicable 3  Lack of willingness to pay  Irregular collection  Low collection efficiency  Increased willingness  Monthly collection  95 % collection efficiency  Increased willingness  Bi-monthly collectio  88% collection efficiency  The problem did not exist  Monthly collection  98% collection efficiency 4  Lack of proper maintenance  Lack of manpower  Lack of funds for maintenance  Regular maintenance  Private electricians hired  Users partly fund maintenance  Occasional maintenance  Private electricians hired  Users partly fund maintenance  Regular maintenance  Does not exist 5  Load shedding  Breakdowns  Low voltage  No load shedding  Ten cases/month  Does not exist  No load shedding  25 cases/month  Does not exist  Not applicable  Did not exist

Ineffectiveness in Electricity Delivery 1.Poor Quality of Service:  Less access to service provider  High level of corruption  Low responsiveness of service provider 2. Low Access:  High initial cost  High cost of service (monthly bill)  Cumbersome procedure of application for connection

Sources Orissa (Micro- Privatisation) Franchisee & Users’ Committee Orissa (Users’ Participation) Users’ Committee Sundarbans (Cooperative) Cooperative & Beneficiary Committee 1  Low access to provider  High corruption  Low responsiveness of provider  Franchisee is more accessible  Corruption has reduced  Franchisee is responsive  Utility remains less accessible  Corruption has reduced  Utility remains less responsive  Cooperative is more accessible  No corruption  Cooperative is responsive 2  High initial cost  High cost of service  Cumbersome procedure of application  Low rate of household electrification (44%)  Reduced initial cost  Reduction in monthly bills  Less paper work with recommendation from the committee  71% household electrified  Reduced initial cost  Reduction in monthly bills  Less paper work with recommendation from the committee  63% household electrified  Low initial cost  Users decide the bill  Not Applicable  20% households electrified through cooperative

Conclusion and Suggestions  Putting poor people at the centre of service delivery can work  It will work best when both the users and the provider are given equal status It requires:  Formal legal status for the micro-institutions  Sharing of power and authority  Funding for their operation  Information sharing  Building a network of the micro-institutions  Special schemes with government subvention  Government funding for maintenance (till the utilities become financially viable)

Thank You