Consumer protection and service quality improvement mechanisms

1. Consumer protection and service quality improvement mechanisms Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan DelegatesNovember 16-18, 2010, Pune, IndiaPrayas Energy Groupwww.prayaspune.org/peg, energy@prayaspune.org

2. Agenda • Overview • Legal and regulatory framework • Effectiveness and shortcomings Prayas EGI Workshop

3. Consumer Expectations & agitations Adequate & timely availability of power Reasonable Tariff Good Service Quality Prayas EGI Workshop

4. Service and supply related issues • Poor service quality: • Billing errors, metering related issues, un-timely fault resolution, etc • Un-planned load Shedding, poor quality of supply, etc • Lack of information/clarity about procedures such as getting new connection, change in name or connection type and so on • Lack of access: • Half the households do not get electricity which is a high quality, cost effective form of energy Poor and small consumers most effected Prayas EGI Workshop

5. Legal provisions related to supply and service quality • Electricity Act 2003 • “Section 57.(1)The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees.” • “Section 59 (1): ... furnish to the Commission the following information, namely:- • (a) the level of performance achieved under sub-section (1) of the section 57; • (b) the number of cases in which compensation was made under subsection (2) of section 57 and the aggregate amount of the compensation.” • “Section 59 (2): The Appropriate Commission shall at least once in every year arrange for the publication, in such form and manner as it considers appropriate, of such of the information furnished to it under sub-section (1).” Prayas EGI Workshop

6. Legal provisions for grievance redressal • Section 42: • Mandates utilities to establish forum for redressal of grievances of the consumers • Establishment of Ombudsman as highest authority for consumer grievance redressal • Provisions of Consumer Protection Act 1986, override provisions of Electricity Act 2003 Prayas EGI Workshop

7. Standards of performance • MERC (Standards of Performance of Distribution Licensees, Period for Giving Supply and Determination of Compensation) Regulations, 2005 • Period of giving supply • Quality of supply and system of supply • Restoration of power supply, in case of faults • Metering, reconnection • Consumer service norms, determination of compensation Prayas EGI Workshop

8. Excerpt of MERC Standards of performance published in 2005 Prayas EGI Workshop

9. Supply Code provisions • MERC (Electricity Supply Code and Other Conditions of Supply) Regulations, 2005 • Methods of recovery of electricity charges • Intervals for billing • Disconnection procedure • Wiring of consumer’s premises • Basis for categorization of consumers into a tariff category Prayas EGI Workshop

10. Excerpt of MERC Supply Code published in 2005 Prayas EGI Workshop

11. Three tier grievance redressal mechanism structure Consumer’s grievance • Each licensee to establish IGRC & CGRF • CGRF • Consists of Independent Chairperson, utility’s representative, and consumer representative • Should decide the matter within 2 months • Ombudsman • Appointed by commission • Only consumer can appeal against the decision of CGRF to Ombudsman • Orders available on website Internal Grievance Redressal Cell (IGRC) Consumer Grievance Redressal Forum (CGRF) Ombudsman Prayas EGI Workshop

12. Ombudsman website screenshot Prayas EGI Workshop

13. Forum wise status of compliance of orders Prayas EGI Workshop

14. Regulatory Role in protecting consumer interests • Setting reasonable and affordable tariff that reflects supply and service quality • Ensuring adequate power availability • Monitoring of supply and service quality • Ensuring compliance of utility with various legal provisions and regulations • Conducting due public processes for all the above functions • Increase awareness and transparency encourage public participation Prayas EGI Workshop

15. Regulatory mandate • Defining norms and standards for service quality that utility must comply with • Establishing grievance redressal mechanism that is simple, easy to access, quick in response and economical for consumers • Establish monitoring mechanisms to ensure compliance of standards and regulations and effective grievance redressal Prayas EGI Workshop

16. Steps taken by MERC • Load shedding protocol • Equitable distribution of shortage c • Ceiling on number of load shedding hours in a given area based on losses • Public hearings for deciding the protocol • Publishes all CGRF and Ombudsman orders on website • Sou-moto hearings on important cases which affect large number of consumers • Workshops for assessing CGRF performance and issues faced by them • Amending regulations based on feedback from consumers and other stakeholders Prayas EGI Workshop

17. Role of Civil Society • Increasing awareness and participation • Consumer education through booklets and pamphlets • Establishing consumer advocacy cells, consumer groups/organizations that work on electricity issues • Can make use of provisions under the Right to Information Act if the utility is not cooperating or unwilling to share information Prayas EGI Workshop

18. Barriers to be overcome • Lack of awareness amongst consumers • Utilities do not perceive themselves as service providers • Cost of intervention could be too high for the poor • Utilities prefer litigations in High court instead of complying with CGRF/ombudsman orders • Lack of effective mechanisms/systems for supply and service quality monitoring Prayas EGI Workshop

19. Comments and discussion Prayas EGI Workshop