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Prayas - EGI Workshop Pune, Nov. 2010 1 Furthering TAP and Protecting Public Interest- Strategies and Challenges Prayas - EGI Skill-share workshop for.

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Presentation on theme: "Prayas - EGI Workshop Pune, Nov. 2010 1 Furthering TAP and Protecting Public Interest- Strategies and Challenges Prayas - EGI Skill-share workshop for."— Presentation transcript:

1 Prayas - EGI Workshop Pune, Nov 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 Group

2 Prayas - EGI Workshop Pune, Nov 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.

3 Prayas - EGI Workshop Pune, Nov 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

4 Prayas - EGI Workshop Pune, Nov 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

5 Prayas - EGI Workshop Pune, Nov 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

6 Prayas - EGI Workshop Pune, Nov 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

7 Prayas - EGI Workshop Pune, Nov 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

8 Prayas - EGI Workshop Pune, Nov 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

9 Prayas - EGI Workshop Pune, Nov Strategy & Challenges -3 Threat of Judicial/Analytical review Be patient, consistent and persistent Be realistic about expectations and constraints Legal, Techno-economic, Administrative/ Managerial

10 Prayas - EGI Workshop Pune, Nov 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

11 Prayas - EGI Workshop Pune, Nov 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

12 Prayas - EGI Workshop Pune, Nov 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

13 Prayas - EGI Workshop Pune, Nov The balance sheet + Significant improvement in T, A, P Exposing gross inefficiencies and initiating remedial actions - Private utilities still remain unaccountable Power purchase and capital expenditure accountability – continuous challenge Not enough push for DSM / RE Access (electrification) remains neglected issue


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