1. Consultancy Support to the Haryana Electricity Regulatory Commission Findings of a Consumer Survey and emerging recommendations 29 September 2010, Haryana Siddhartha Mitra, Director, CUTS International CUTS International

2. Presentation Outline ● Rationale ● Objectives ● Scope ● Sample Design ● Survey Findings  Consumer Awareness  Regulation and Reforms  Energy Issues  Tariff and Open Access  Metering and Billing  Complaint Redressal  Quality of Supply and Coverage ● Proposed Roadmap for Social Accountability ● Other Recommendations

3. Rationale for the Study ● Power sector reforms were initiated to ensure consumer participation, promote competition and private investment  Haryana Electricity Reform Act, 1997 Restructuring of the Electricity Sector Constitution of an Electricity Regulatory Commission Creation of avenues for consumer participation in regulation/reforms ● Given that a decade has passed, evaluation of the status of consumer participation, as targeted, is due  Extent to which consumers are aware of rights and responsibilities  Platforms and modes adopted by the regulatory agency to foster consumer participation  Associated changes in regulatory decision making and improvement in quality and reliability of service

4. Objectives ● Assess the role and scope of HERC in promoting consumer participation in regulatory decision making ● Review the status of consumer satisfaction and awareness ● Recommend measures to promote adequate public participation in the sector

5. Scope: Coverage of Attributes of Consumer Empowerment ● Consumer awareness about HERC and its consultation process, key regulations for consumer protection etc; and resulting extent of consumer participation in regulatory issues ● Effectiveness of communication channels evolved by distribution companies ● Consumer satisfaction in regard to quality of service, release of new connections, metering and billing (efficiency, accuracy, convenience) ● Consumer perceptions about effectiveness of complaint registration and redressal ● Consumer awareness of the need for energy conservation and its manifestation through practice

6. Sample Design ● Multi stage sampling which took into account geographical spread, relative literacy and rural-urban divide to ensure representative nature ● Separate surveys for a) domestic, agricultural and commercial (DAC) consumers and b) industrial consumers ● Survey (a) targeted 1000 consumers by surveying 1134 respondents or around140 consumers per district ● Survey (b) targeted 28-29 respondents per district with both LT and HT categories represented

7. SURVEY FINDINGS

8. Consumer Awareness and Participation: Regulatory and Reform Issues ● Low awareness/participation about/in regulatory and reform issues  DAC consumers Only 2 percent aware of the constitution of HERC and almost none about its functions and regulations Around 0.5 percent aware of websites of distribution companies or HERC  Industry consumers Only 14 percent aware of functions of HERC Only 14 percent aware about key regulations Only 3 percent visit the websites of HERC and distribution companies Only 3 out of 227 respondents have ever made submissions to HERC but none are satisfied with decisions

9. Consumer Awareness about Energy issues ● High awareness among DAC consumers about energy efficiency issues  90 percent are aware and 95 percent of those aware are using equipment such as CFL lights, and energy efficient fans, coolers etc ● However, among agricultural consumers about 64 percent are unaware of the availability of energy efficient pump-sets though 81 percent of those aware are using these ● Very high awareness about the need for energy conservation among industrial consumers  99 percent aware of the need  62 and 50 percent in HT and LT categories respectively have taken proactive steps

10. Consumer Awareness about Tariff and Open Access Issues ● Lack of awareness among DAC consumers regarding tariff structure and cost of supply issues with adverse implications for efficient use of electricity  87 percent not aware of increasing tariff slabs  55 percent believe they are paying high tariffs and even in highly subsidised agriculture only around 66 percent perceive tariffs as ‘just fair’ ● Low awareness among industrial consumers about regulations for enabling open access  None of the respondents have applied for open access so far

11. Billing and Metering ● Meter related issues 71 and 70 percent of DAC and industrial consumers respectively are satisfied with meter functioning 95 percent of DAC consumers report that meters are being read regularly High incidence of dissatisfaction with meter testing among DAC consumers (71 percent dissatisfied) contrasted with predominant satisfaction among industrial consumers (about 88 percent satisfied) ● Billing related issues 98 and 97 percent of DAC and industry respondents respectively reported regular billing while 64 and 67 percent respectively reported never having received a faulty bill Problem among DAC consumers, especially uneducated ones, in understanding bills  Only 7 percent were able to understand bills completely  Complex format and absence of details in vernacular language are some underlying reasons

12. Complaint Redressal ● Dissatisfaction about redressal of metering and billing complaints  Among DAC complainants, 59 percent in regard to metering and more than 50 percent in regard to billing reported that redressal did not take place within the HERC stipulated period of a week  55 percent of industrial complainants were not satisfied with redressal of billing complaints with 36 percent reporting that more than a week was taken to attend to their complaints  Average time taken to resolve a metering complaint in the case of industrial consumers much higher than the limit specified by HERC though 67 percent were resolved within this time limit ● Problems with Complaint Redressal Mechanisms  98 percent of DAC consumers were unaware about Consumer Redressal Forums while suggestions of 99 percent about CRMs were never taken  88 and 72 percent of DAC and industrial complainants respectively were not given a complaint registration number and many felt that complaints were not being registered properly  Very low use of modern means such as SMS, email and calling toll free etc.: for example, 97 and 84 percent of industry and DAC complainants respectively used ‘charged calls’ or personal visits

13. Quality of Supply and Coverage ● Inadequate supply and voltage fluctuations are the major concerns of consumers  44 percent of DAC respondents have experienced damage/burning of equipment due to unsuitable voltage while 56 percent of industrial respondents have reported experiences of inadequate voltage  68 percent of DAC consumers and 58 percent of industrial consumers experienced shutdowns of more than 10 and 6 hours respectively  Most DAC and industrial consumers (98 and 95 percent respectively) reported not getting prior information on shutdowns ● Release of new connections is widely perceived as non transparent and costly (54 percent of DAC applicants over last three years are dissatisfied)

14. Consumer Empowerment/ Satisfaction Indices: Findings ● Consumer empowerment index involving separate evaluation of consumer awareness and consumer satisfaction indices constructed for DAC consumers ● Only a consumer satisfaction index constructed for industrial consumers ● Indices reiterate the findings of the previous slides ● Wide variation in indices across districts though not across the jurisdictions of the two electricity distribution companies

15. Proposed Road Map for Promotion of Social Accountability ● Envisaged outcomes  Enhanced consumer welfare due to incorporation of consumer preferences  Improved service delivery and better complaint redressal  Enduring partnership among consumers, regulators and utilities would ensure a mechanism for continuous improvement ● Three Phases (total of 3.5 years)  Phase I (6 months)  Supplement consumer survey results with follow up interviews with regulator and focussed group discussions to throw up problem areas  Bring these to the attention of CSOs, consumer organisations and interested individuals to encourage the evolution of local champions

16. Proposed Road Map for Promotion of Social Accountability contd.. ● Three Phases (total of 3.5 years)  Phase II (1 year): Creation of capacity of local champions in  Undertaking audits of regulation and governance;  Analysing audits and use of these to make recommendations  Voicing these recommendations during interactions with regulator and utilities  Phase III (2 years): Handholding of the local champion during one feedback cycle  Conduct of a consumer survey  Analysis of survey findings for formulation of recommendations  Voicing of recommendations

17. Other Recommendations Intended Improve ment Actions Needed by HERC Actions Needed by Distribution Company Actions needed on part of consumers/CSOs Improved quality of service Collection of baseline data; monitoring of data at utility level; facilitation of communication between distribution companies and consumers Proper repair and maintenance; monitoring data at feeder level; strengthening communication and obtaining consumer feedback Provision of feedback; promotion of curbs on theft of power and prevention of energy wastage Efficient metering and billing Monitoring and incentivising compliance with SoP; facilitation of 100 percent metering Greater transparency in billing and metering; promotion of use of modern means for bill payment; smart metering initiatives Provision of feedback to distribution companies; random check on energy meters; promotion of regular payment of dues and curbs on meter tampering

18. Other Recommendations contd… Intended Improvem ent Actions Needed by HERC Actions Needed by Distribution Company Actions needed on part of consumers/CSOs Enhanced consumer awarenes s Use of vernacular in communications; use of mass media; geographical dispersion of public hearings; building of capacity among select stakeholder groups Spreading useful information through electricity bills, local television and radio; support to HERC for mentioned capacity building Active participation in public hearings; generation of consumer awareness; provision of feedback to HERC and distribution companies on key issues Active consumer participati on Training seminars and workshops; appointment of a consumer advocate Provision of required information to consumers/CSOs; supporting the HERC in mentioned capacity building As mentioned above; to not be influenced by vested political interests Efficient complaint redressal Compensation for non compliance with SoP; organisation of public hearings and Lok Adalats; publication of relevant information regarding facilities/regulations Spreading consumer awareness through billing statements; proper registration of consumer complaints; computerisation of complaint redressal system Written complaints; promoting the making of requests for registration numbers; provision of feedback to HERC/discoms about systemic issues; undertaking proper follow up of complaint redressal

19. Thank You