SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad SAFIR Core Course Infrastructure Regulation & Reforms Administrative Staff College of India Hyderabad, INDIA 27 February to 2 March 2012 Course Overview

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Context Infrastructure deficit in the region is acute and needs to be addressed Move from purely government entities providing the infrastrucutre to different models of corproatisation, PPPs and private sector participation Technology changes that have changed the dynamics of some of the sectors Need to have independent regulation as part of the governance reforms for the sectors

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Objectives Have a deeper understanding of the economics of regulation Have a deeper appreciation of the institutional framework of regulatory design Get an overview of the current issues of infrastructure development and regulation across the South Asian region Develop an understanding of the role of the regulator in pricing, monitoring performance standards, addressing consumer grievances and developing markets.

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Topics Covered Overview of Infrastructure Regulation: –Regulatory Problem: Market and Non-market failure –Economic concepts for regulators –Market Structure and Competition Approach to Regulation: –Cost Based Regulation –Incentive or Performance Based Regulation –Hybrid Models Financial Analysis for Regulation –Treatment of Capital expenditure –Information requirements for regulators –Regulatory Accounting

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Tariff Setting –Approaches and methodologies –Practice –Dealing with subsidies and universal service/access obligations Emerging Issues –Regulation in the Context of PPPs –Interface between sectoral regulators and the Competition Commission

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Overview of Regulatory Design in South Asia (in the form of Participants presentation and discussions) Legal Framework –Organisation structure Regulatory Process Role of the regulator: –Licensing –Tariff setting –Monitoring performance standards –Protecting consumers –Introducing competition and markets –Communication to stakeholders

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Case: Group Discussion and Presentation Based on the emergence of retail competition in Mumbai Issues and controversies that it has thrown up Five groups: –R Infra D –Tata Power –MERC –GoM –Consumer Group

SAFIR Core Course on Infrastructure Regulation & Reforms 2012, ASCI, Hyderabad Other Events Tuesday: 28 Feb 2012 – DG, ASCI is hosting a get together and dinner at 1930 hrs Wednesday – Half day city tour: –Drive through new Hyderabad –Visits to Chowmohalla Palace –Near Charminar and the Mecca Masjid – part of the Khilawat palace complex, refurbished by the Chowmohalla Trust set up by the Princess Esra, –The prestigious UNESCO Asia Pacific Merit award for cultural heritage conservation was presented to Chowmahalla Palace on March 15, Golkonda Fort – sound and light show which highlights takes you back to the origins of Hyderabad