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Why Regulate? Market Signals vis-à-vis Planning Models

Why Regulate? Market Signals vis-à-vis Planning Models. Shantanu Dixit Prayas Energy Group, Pune, India Partha Mukhopadhyay Centre for Policy Research, New Delhi, India. In this Session. Capacity Planning Fragmented market Where do markets exist? Which segments are still administrative?

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Why Regulate? Market Signals vis-à-vis Planning Models

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  1. Why Regulate? Market Signals vis-à-vis Planning Models Shantanu Dixit Prayas Energy Group, Pune, India Partha Mukhopadhyay Centre for Policy Research, New Delhi, India

  2. In this Session • Capacity Planning • Fragmented market • Where do markets exist? • Which segments are still administrative? • Least Cost Planning • Demand Side Management • Non-conventional Energy • Private Investment • Implication of Bidding models • User Impact • Renegotiation • Network Expansion • Chicken and Egg • Interconnection • Open access • Implications for case study

  3. PP12: Elements of Quality • Requirement to consult planning agency: There is an explicit requirement that the executive consult the planning agency. This requirement could be in the form of a statutory requirement for consultation or a system of periodic meetings between executive and planning agency. • Mechanism to evaluate executive response: There is a mechanism to evaluate how the executive responds to the recommendations or decisions of the planning agency. For example, this requirement could be that the annual report of the ministry discusses the recommendations or decisions made by the planning agency and the executive’s response to the same. • Authority to seek information: Planning agency has the authority to seek information from the executive as well as other electricity sector agencies and exercises this authority in practice. This information will be contained in the legal instrument (statute or law) establishing the planning agency. To assess whether this authority is exercised in practice, interview selected officials in the planning agency and request information on specific instances when they have asked for information, and what has been received. • Adequate resources: Adequate resources for information collection and studies are available to the planning agency. Scrutinize the budget of the planning agency to ascertain budgetary availability for independent analysis, and examine whether it has been growing or shrinking over time. • Transparency in functioning: The planning agency is required to publicly release analysis, studies, and recommendations, and this requirement is exercised practice. Examine the operating rules of the agency. • Consultation procedures: The planning agency is required to consult stakeholders and other members of the public before major policy recommendations or decisions. Discuss with stakeholders their perception of the planning agency, and the extent to which it provides a useful and viable avenue for meeting stakeholder concerns regarding planning of the sector.

  4. Thank You shantanu@prayaspune.org partha@cprindia.org

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