The Electricity Governance Initiative Building on Pilot Assessments EGI Forum, Bangkok, Thailand

1. Electricity Governance Indicator Toolkit Application Project - IndiaTurning Promise into Practice The Electricity Governance Initiative Building on Pilot Assessments EGI Forum, Bangkok, Thailand March 30-31, 2006

2. EGI Team • Citizen, Consumer & Civic Action Group • Centre for Environmental Concerns • Praja • Centre for Policy Research

3. The Indian Context • 25 Years of Reforms • 1992 – IPP Phase • 1996 - Distribution Reforms • 2003 – Electricity Act 2003 • Open access, regulation, delicensing of generation, cross-subsidies • National Electricity Policy • National Tariff Policy • Rural Electrification Policy

4. Challenges -1 • Conflict of Interest • Parliamentarians • Ministry of Power • Regulators • Consultants

5. Challenges -2 • Selection Process of Regulators • Entirely non-transparent • Vague Criteria • Whimsical

6. Challenges - 3 • Mainstreaming the Environment • Disconnect Between Power and Environment Ministries • Emphasis Limited to Energy Efficiency • No Integrated Resource Planning • New Law Does Not Address Environment

7. Challenges - 4 • Absence of Impact Assessment of Policies • Impact of IPP Policies on Utility Viability • Job Losses • Open Access & Its Impact on the Utility • Impact of Tariff Policy on the Consumer • Impact of Sector Planning on the Environment

8. Challenges - 5 • Capacity of Stakeholders • Parliamentarians • Executive – CEA is only Advisory • Regulators • Civil Society • Consultants

9. Good Practices -1 • Good Regulatory Hardware • Reform Act & Electricity Act 2003 • Sufficient Authority, Autonomy, Remit & Independence • Clear Channels of Authority • Continuity Through Overlapping Tenures

10. Good Practices - 2 • Good Regulatory Procedures • Well-defined Consultative Procedures – CAC • Well-defined Tariff Setting Procedures • Open Public Hearings • Predictability & Stability

11. Good Practices - 3 • Greater (But Not Enough) Transparency in Policy Making Processes • Draft Policies on Websites • Seminars and Workshops to Debate Policies • Consultation with Stakeholders • Soliciting Feedback From the Public

12. Good Practices - 4 • Greater Transparency in Information Available to the Public • ARRs • Draft Policies • Conduct of Business Rules • Predictability in Procedures • Tariff Philosophy Papers • Transparency in ATC Losses

13. Good Practices - 5 • Consumers Moving Centre-Stage • Greater Attention to Quality of Service • Complaint Redressal Mechanisms by Utilities • Complaint Redressal Mechanisms • Ombudsman, Appellate Authority, Courts • APDRP Seeks to Address T&D Losses

14. Policy – Action Points • Introduce Mandatory Provisions for • Clarity in Jurisdictions of Institutions • Clarity in Procedures & Timelines to be Adopted • Public Access to Background Data & Expert Inputs • Proactive Dissemination of Draft Policies for Eliciting Public Inputs • Greater Transparency in the Role of Consultants

15. Regulation – Action Points • Build Civil Society Capacity • Financial, Analytical, Technical, Economic, Legal • Build Training & Capacity Building Mechanisms for – Regulators & Their Staff • Operationalise Transparency Mechanisms

16. ESA – Action Points • Integrate ESA in Sector Reform • Internalise ESA in the Mandate of Electricity Institutions • Expand Regulatory Mandate to Factor in Trade-offs • Build Capacity to Address ESA • Monitor Job Impact of Power Reforms • Strengthen EIA Laws & Procedures • Protect Rights of Project-affected Peoples