Presentation By Prayas Energy Group, India prayaspune/peg

Prayas Energy Group, India

Transparency in Electricity Service Delivery: Billing, Quality of Service

and consumer issuesBishkek, September 2011

PresentationBy

Prayas Energy Group, Indiawww.prayaspune.org/peg


‘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 …

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

www.amulya-reddy.org.in

http://www.amulya-reddy.org.in/

3Prayas 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


Consumer Expectations & Agitations

Adequate & timely availability of power

Good Service Quality

Reasonable Tariff


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


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


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


India’s approach and regulatory experience, so far


Indian Power Sector StructureRegulator

Generators

Transmission and Load Dispatch

Distribution Companies


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.”

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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).”

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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

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Excerpt of MERC Standards of Performance published in 2005

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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

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Excerpt of MERC Supply Code published in 2005

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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 2003

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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 website17

Consumer’s grievance

Internal Grievance Redressal Cell (IGRC)

Consumer Grievance Redressal Forum (CGRF)

Ombudsman


Maharashtra Ombudsman website screenshot

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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

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Orissa State ERC has set-up monitoring committee for ensuring improvement in service quality


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

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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

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Questions &

Discussion

Ashwini [email protected]/peg

Documents

Presentation By Prayas Energy Group, India prayaspune/peg