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The Relevance of Governance to Electricity Reform

The Relevance of Governance to Electricity Reform. NATIONAL INSTITUTE OF PUBLIC FINANCE AND POLICY. PRAYAS- PUNE ENERGYGROUP. Navroz Dubash, NIPFP Smita Nakhooda, WRI World Bank Energy Week 8 March 2006. Outline. Linking Governance and Electricity

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The Relevance of Governance to Electricity Reform

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  1. The Relevance of Governance to Electricity Reform NATIONAL INSTITUTE OF PUBLIC FINANCE AND POLICY PRAYAS- PUNE ENERGYGROUP Navroz Dubash, NIPFP Smita Nakhooda, WRI World Bank Energy Week 8 March 2006

  2. Outline • Linking Governance and Electricity • An Introduction to the Electricity Governance Initiative (EGI) • Preliminary Insights • Conclusions

  3. Reform: A Rocky Road • Popular protest - India, Philippines, Latinobarometro Polls • Governments slowing and halting reform • South Africa, Korea, Indonesia

  4. Political Objectives of Economic Reform • Privatization: Private sector more likely to resist government interference • Corporatization: Shed political and bureaucratic control • Public Ownership: Ensure commitment to commercial goals • These measures only partially successful

  5. A Governance Diagnosis • Financial considerations dominate reform • Shrinking space for public debate • Inadequate scrutiny of prescriptions • Equity and environment neglected • Lack of democratic legitimacy

  6. Objectives of the Electricity Governance Initiative • Create space for democratic accountability • legislative, executive, regulatory processes • Develop a common understanding of electricity governance • Establish benchmarks of best practice • Build Capacity to practice good governance • Government • Civil society

  7. What do We Mean by Governance • How we make decisions shapes what decisions get made • Consider institutions and processes beyond the electricity sector • Democratic Decision-Making • More than corporate governance or incentives • Higher transactions costs, but greater legitimacy

  8. The EGI Toolkit • A framework of research questions to generate qualitative indicators of governance • Legislative, executive, regulatory levels • Emphasize environmental and social concerns • Transparency, participation, accountability and capacity (law and practice)

  9. Insights from the Assessments INDONESIA Indonesian Institute for Energy Economics INDIA Center for Policy Research THAILAND Health Systems Research Institute PHILIPPINES Green Independent Power Producers

  10. Open and Inclusive Policy Processes

  11. Participation in Electricity Policy Making

  12. Decision-Making Process

  13. Participation and Government Response

  14. The Regulatory Process

  15. Effective Regulatory Process

  16. Selection of Regulatory Members

  17. Public Access to Documents

  18. Conclusions • How decisions get made influences what decisions are made • Electricity governance is tied to larger political processes and institutions • Public engagement needs to be an explicit part of institutional design

  19. The Electricity Governance Initiative http://electricitygovernance.wri.org Contact: Smita Nakhooda snakhooda@wri.org Navroz Dubash ndubash@nipfp.org.in

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