Prayas Energy Group, India Transparency in Electricity Service Delivery: Billing, Quality of Service and consumer issues Bishkek, September 2011 Presentation By Prayas Energy Group, India

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 … 2 Activities: Research & intervention (regulatory, policy) Civil Society training, awareness, and support

Prayas Energy Group, India 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 3

Prayas Energy Group, India Consumer Expectations & Agitations Adequate & timely availability of power Good Service Quality Reasonable Tariff 4

Prayas Energy Group, India 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 5

Prayas Energy Group, India 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 6

Prayas Energy Group, India 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 7

Prayas Energy Group, India India’s approach and regulatory experience, so far

Prayas Energy Group, India Indian Power Sector Structure 9 Generators Transmission and Load Dispatch Distribution Companies

Prayas Energy Group, India 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.” 10

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).” 11

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 12

Prayas Energy Group, India Excerpt of MERC Standards of Performance published in

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 14

Prayas Energy Group, India Excerpt of MERC Supply Code published in

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

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 website 17 Consumer’s grievance Internal Grievance Redressal Cell (IGRC) Consumer Grievance Redressal Forum (CGRF) Ombudsman

Prayas Energy Group, India Maharashtra Ombudsman website screenshot 18

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 19

Prayas Energy Group, India Orissa State ERC has set-up monitoring committee for ensuring improvement in service quality 20

Prayas Energy Group, India 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 21

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 22

Prayas Energy Group, India Questions & Discussion Ashwini Chitnis