Furthering TAP and Protecting Public Interest- Strategies and Challenges

Prayas - EGI Workshop Pune, Nov. 2010 1

Furthering TAP and Protecting Public Interest- Strategies and Challenges

Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan Delegates

November 16-18, 2010, Pune, India

Prayas Energy Groupwww.prayaspune.org/peg, energy@prayaspune

.org


Regulation: Prayas perspective ..1

We see it as:“Ways and means employed by the

society to ensure that rational decisions (from society’s point of view) are made.”

(Prayas Presentation at World Bank, 1997)

Hence… we see RCs as the key change in the governance set up of our country.


Regulation: Prayas perspective ..2 Importance of independent regulatory

process Natural monopoly and cost-plus tariff framework Shortage scenario, poor service quality History of vested interests misusing authority /

sector for narrow gains RC is a key governance institution that

should Balance interests of all stakeholders Enhance accountability of utilities, government

and other actors Instill confidence through fair, rational decisions


Strategy Create Spaces for TAP processes

Early, Pro-active, Consistent efforts Supported through consensus building

Develop Capabilities Strategic use of spaces

Maintain and strengthen spaces Analysis based interventions Supported through consensus building


Strategy used by Prayas

Analytical Offensive

The State (Government)

Reg Com Utilities (Public/Private)

Insistence on Due Process

Threat of Analytical

and Judicial Review

Wider Public / Political

Support and Legitimacy

Efforts in All Areas


Strategy & Challenges -1 Analytical Offensive

Identify the Crucial issues (gross inefficiencies) High attention to issues with high potential to influence Analyse with no vested interests – present or perceived Mix of Adversarial and Facilitative interventions

Criticise and Suggest way forward Proactive, advanced interventions

Framing the processes (eg. Rules & Regulations)

Focus on long term, balanced development of the sector

which will benefit all consumer categories and

environment. Special focus on small consumers

Facilitate innovation


Analysis Outputs Joint innovation

Electricity Governance Initiative, Electricity Supply Monitoring Initiative

Reports Survey of Electricity

Regulatory Commissions, Study of Distribution Quality of Service, Study of Bhivandi Distribution Franchisees

Policy & Regulatory Interventions

Books & booklets Media articles


Strategy & Challenges -2 Insistence on due process

Stringent monitoring Utility performance Compliance with Act, rules and

regulations Avoid … …

Verbal arguments, emotive approach Alleging ill-intent


Strategy & Challenges -3 Threat of Judicial/Analytical review

Be patient, consistent and persistent Be realistic about expectations and

constraints Legal, Techno-economic, Administrative/

Managerial


Strategy & Challenges -4 Wide support & Legitimacy

Consensus building Work with all actors – Government, Utility,

Regulator, Consumer organisations (farmers, industry organisations etc) Unions, & Media

De-mystify the sector To give a perspective, not expertise To be able to ask key questions Convert to quantifiable identifiable impacts (eg. Talk

about tariff impact, not just jargon based models) Simplify, do not be simplistic Repeat, repeat, repeat


Lessons & Precautions …1

Strong intervention by NGOs / consumer bodies can lead to significant benefits

We need to … … Engage and intervene early in the process

RC’s are more willing and open as they are also learning Need to set right precedents More responsive in the initial stage

Be realistic about expectations and constraints Legal, Techno-economic, Administrative/ Managerial

Long term, comprehensive perspective and actions


Lessons & Precautions …2 Put burden of proof on RCs / utilities

Ask key questions Demand tariff / financial impacts of key decisions (AP –

LOLP) Ensure due process is followed

Public hearing Transparency

Seek wider support Other groups (unions, farmers & industry organizations etc.) &

Media. We need to avoid … …

Verbal arguments, emotive approach Alleging ill-intent


The balance sheet+

Significant improvement in T, A, PExposing gross inefficiencies and initiating

remedial actions

-Private utilities still remain unaccountablePower purchase and capital expenditure accountability – continuous challengeNot enough push for DSM / REAccess (electrification) remains neglected issue

Furthering TAP and Protecting Public Interest- Strategies and Challenges

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