1. Empowering People The Electricity Governance Initiative PRAYAS- PUNE ENERGYGROUP Smita Nakhooda 11 May 2007 New York CSD 15

2. Urgent challenges of transitioning to clean energy …and improving access for the poorest

3. A Governance Diagnosis Closed decision making process Inadequate information available for scrutiny Little public debate of alternative reform approaches Inadequate consideration of public concerns –Financial interests crowd out public interests ➔ Adoption of untested reform prescriptions ➔ Weak democratic legitimacy

4. Towards Improved Governance Focus on the process of decision-making and implementation –How decisions are made shape what decisions are made –Attention to transparency, scope for public participation, mechanisms of accountability Good governance is necessary though not sufficient for good outcomes

5. The Electricity Governance Initiative Contribute to improved communication among stakeholders Provide a capacity building platform for improving practice Develop an operational framework to assess governance and help identify best practices

6. An assessment seeks to create a new dialogue between civil society and sector actors Research Team A coalition of NGOs active in power sector issues Advisory Panel Representatives of Government, Regulator, Utilities, Private Sector

7. POLICY PROCESSES Institutional/ Procedural -Legislative Committee -Executive -Independence -Reporting -Reform and policy change -Planning Agencies -Donor Agencies -Role of Consultants -Civil Society Capacity -Clarity of policy processes -Availability of supporting documentation - Media Coverage Substantive Issues -Asset Evaluation -Privatization -Subsidies -IPPs -Competition REGULATORY PROCESSES Institutional / Procedural -Authority + Autonomy -Financial + Human Resources -Function/Jurisdiction -Conflict of interest -Appeals -Training -Use of consultants -Procedural clarity -Disclosure -Basis for decisions Substantive Issues -Performance Reporting -Tariff Philosophy -Licensing -Consumer service and Quality of Supply ENVIRONMENTAL + SOCIAL ASPECTS Institutional / Procedural -Clarity of environmental jurisdiction -Executive, regulatory & legislative mandates -Setting minimum environmental standards -Inclusion of environment in planning and reform - Access to redress on social or environmental grounds -Utility engagement w/ public -NGO capacity to address social + environmental issues Substantive Issues -Labor impacts -Access to electricity -Affordability -Project affected people - Renewables -Environmental & social performance reporting -Greenhouse gas reporting BASELINE INDICATORS: MAPPING THE ELECTRICITY SECTOR

8. Do energy ministry staff think about environmental issues?

9. Executive capacity to address environmental and social considerations Elements of Quality:  A budget to support social and environmental considerations  Dedicated staff  Expertise of staff  Training

10. Are environmental issues the electricity regulator’s concern?

11.  Reference to environmental and social responsibilities  Considered in tariff setting Access to information  In official journals  On the regulator’s website  Low cost or free  Disseminated through media  Outreach to weaker groups India Low- Medium Thailand Low Indonesia Low Philippines Low xxxxxx xxxx x Regulator’s Environmental and Social Mandate

12. Are the public included in decisions about which energy technologies to promote?

13. Considers at least three of following:  Co-generation  Demand-side management  Energy saving companies  Grid renewables  Distributed renewables  Improved fossil fuel technologies  Pollution control technologies  T&D losses  Stakeholder consultation  Use of multiple participation mechanisms Thailand Medium India Medium Philippines Medium -High xxxxxxxxxxxx xxxxxx xxxxxxxxxxxxxx Participation in policies promoting clean technologies

14. Creating a Basis for Change, Generating Dialogue

15. The Indonesia Assessment has Improved Transparency

16. Thai Assessment Draws Attention to EGAT Corporatization Process

17. Attention to governance can help: Promote fair and innovative approaches to expanding access Address environmental, social, and economic impacts of new projects Enhance equity and affordability in tariffs Build consensus and credibility of decisions

18. The Electricity Governance Initiative http://electricitygovernance.wri.org Contact: Smita Nakhooda snakhooda@wri.org