Prayas Energy Group 1 Engaging with Power Policy Sreekumar N Prayas Energy Group KICS Workshop on Policy Matters Hyderabad, August 3-4, 2007

Prayas Energy Group 2 Power Sector – Grid & Non- Grid A Key infrastructure sector; in the concurrent list Many players with muscle – National Private and Public sector players: Utilities, Manufacturers, Service Providers, Financial Institutions – Multinational equipment manufacturers, service providers, International Financial Institutions Unionised – worker and officer levels in utilities Technically Complex Multiple linkages – Fuel: Hydro, Coal, Petrochemicals, Nuclear, Wind, Solar, Bio – Economic: Macro growth, Livelihood support – Socio-political: Subsidy for farmers & poor, Quality of life for poor & women, Livelihood impact due to big projects – Environment: Rehabilitation, Pollution, Ground water, Global warming Different issues with non-grid power

Prayas Energy Group 3 Why engage with Policy? Directly or indirectly impacts all, with issues at Operation and Policy Levels Major questions on the current Policy paradigm – Centralised, Growth Oriented, Supply Sided, Consumption directed – Focus on Economic growth and Financial viability – Neglects Institutions, Governance, Equity and Sustainability Weakening of coherent Policy processes in the mainstream (especially pro public-interest) – Diminishing legitimacy – Increasing role of vested interests – Questionable capacity to handle the increasing complexities Multiplier effect

Prayas Energy Group 4 Utilities (mostly public) Operation State Policy People Consumers/future consumers/society Regulatory Institutions Regulation Engaging with Policy -1 Business Manufacturing, Services, Financing Influence

Prayas Energy Group 5 Engaging with Policy -2 Strategy – Moving from Operation to Institutions & Governance to Policy – Create Spaces – Build Capacity – Use Spaces Strategically Actors – Mainstream: State, Industry, FIs, Academic, Professional bodies, Political Groups – Civil Society: Consumer groups, Environment groups, Public Interest Analysts, Political Groups

Prayas Energy Group 6 Engaging with Policy -3 Mechanisms – Building Pressure from below Discourse Advocacy Catalysing the transition from ‘Consumer’ to ‘Citizen’ (Grievance to Policy) Monitoring public institutions Campaign support – Direct Interventions Inputs to Policy and Plan processes Comments on Strategy documents Regulatory Interventions at State and Central levels

Prayas Energy Group 7 Effectiveness Success (mostly in Institutions & Governance) – Enron Campaign  Better power contracts – Democratising the Regulatory process  Regulatory Survey, Governance Indicators – Public Interest resources  Rhetoric (like TAP), Primer, Toolkits (Tariff, Governance) Limited Success – National Policies and Plan  Preventing gross mistakes – Developing alternate models  Promotion of components like energy efficiency – Best use of available Spaces

Prayas Energy Group 8 Challenges & Lessons Challenges – Internal – External Work in Operation, Institutions & Governance helps in Policy work Early process interventions important Long lead times: Patient, Persistent, Pro-active engagement essential Balance of macro perspective and rooted-ness Paradigm work has political dimensions, takes time; building the components is important Political understanding as important as techno-economic grasp In Policy engagement: – broaden the boundaries (bring in public interest agenda) – increase participation (de mystify at least to raise questions) – deepen the debate (not offering ‘expert’ prescriptions, working for consensus)