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Improving G overnance in Tamil Nadu Electricity Sector - Empowering consumers

Improving G overnance in Tamil Nadu Electricity Sector - Empowering consumers. K. Vishnu Mohan Rao Citizen consumer and civic Action Group (CAG ). Agenda. Indian Electricity Sector Tamil Nadu Electricity Sector – Failure of Governance Consumer Participation - Consumer Led Governance

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Improving G overnance in Tamil Nadu Electricity Sector - Empowering consumers

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  1. Improving Governance in Tamil NaduElectricity Sector- Empowering consumers K. Vishnu Mohan Rao Citizen consumer and civic Action Group (CAG )

  2. Agenda • Indian Electricity Sector • Tamil Nadu Electricity Sector – Failure of Governance • Consumer Participation - Consumer Led Governance • Tamil Nadu Electricity Governance Initiative (TEGI) Network

  3. Overview • Electricity is in the Concurrent List • Both centre and state have purview • Electricity Act 1910, Electricity Supply Act 1948 • 1990’s- State electricity boards in a mess – • Political control - free power to farmers, highly subsidised power to domestic sector • lack of electricity generation, power cuts, no investments in critical areas. • Average electricity prices lower than average costs • Burden on industries/commercial establishment – making large losses • Loss making utilities

  4. 1990s – Private sector participation - Independent Power Producers – not very successful – high cost of power, political • Electricity Regulatory Commission Act 1998 – • Electricity Act 2003 • Unbundling - generation, transmission and distribution • Cost recovery vs consumer protection • Promote Private sector participation – bidding • Strengthen State Regulators, Central Regulators • Curtailing power of state – extra ordinary circumstances • Involving Consumers in the regulatory, governance process

  5. Transmission Distribution Generation

  6. Tamil Nadu Electricity Sector TNERC Energy Department TEDA (RE) TNEI – EE TN Power Fin Corp TNEB-LTD TANTRANSCO TANGEDCO-G TANGEDCO-D DSM Cell Planning Wing RE-Wing

  7. Present Situation • Demand outstripping supply • Demand: 12,000 MW • Supply: 8000 MW • Shortage: 4000 MW • Projected power deficit – 26 .5% for 2013-14 – (Central Electricity Authority)

  8. Governance Failure - Generation • Environmental Clearance - Udangudi TPS (2 x 800 MW), Cheyyur project • Land Acquisition - BHEL’s projects in TN e.g. Vallur Thermal Power Project, North Chennai Thermal Power Station • Water Linkages – TN Water Deficit State • Fuel Linkages – coal shortage, high cost of imported coal • Delays & cost overrun

  9. Governance Failure - Transmission • Inadequate evacuation facilities – no 400 KV transmission lines to evacuate generated capacity • Projected T & D losses are 18.5% • Scope of future generation projects is therefore hampered • Lack of transmission capacity - Limit the quantum of power - E.g. Gujarat UrjaVidesh Nigam Ltd. (GVNL) • North south interface to be completed in 2014

  10. Governance Failure - Distribution • Loss Rs. 200 crores everyday • Depends on loans for paying salaries etc. • Loses 95 paisa per unit on 3029 MU • Agricultural sector subsidy • Hut Sector – Unmetered • Theft • Manpower Shortage • Lack quality and Technical knowledge

  11. Plus • Lack of Adequate system planning • Inaccurate or non-existent Demand Forecasting • Vague figures e.g. T & D losses • Lack of accountability and transparency in operations – Non-responsiveness to RTI • Political interference • Regulatory oversight

  12. Consumer Participation • Above situation, due to lack of consumer participation • Consumer led governance of utilities is increasing • pro-active, systematic and continuous engagement • Increasing Consumer Participation - increase transparency and accountability • Promote Operational Efficiency - collective capacity and bargaining strength • Focus should be on increasing Consumer policy, planning and regulatory spaces, • Increasing Consumer Representation in committees/forums etc • Promoting Consumer Advocacy in Regulatory hearings

  13. Tamil Nadu Electricity Governance Initiative (TEGI) (Project of CAG) • Create a Network - Small network of different consumer category (industry, agriculture, domestic, commercial groups), relevant NGOs, CSOs and experts • Promote consumer Participation - greater transparency and accountability • interactions, workshops, exchange of information and ideas • innovative ideas for tackling Governance failures in the medium and long-term • Building collective capacity and bargaining strength in existing participatory spaces • Demand more appropriate participatory avenues

  14. Progress so far • TEGI Network • 25 Members from various consumer categories • First TEGI Network Workshop held in Coimbatore for Farmers – • Co-organised by Siruthuli & CAG – Inputs from Consumer Cause (Coimbatore) • Interest shown by farmer groups to be part of the TEGI network • Joint Petition being prepared for Strengthening Consumer Advocacy Cell of TNERC • Joint Petition being prepared for submission on Farmer’s issues on Electricity to TN Energy Secretary

  15. J oin the TEGI Network! • Open to all consumers • Email: teginetwork @ cag.org.in • Address for Communication: • Citizen consumer and civic Action Group 9/5 II Street Padmanabha Nagar, Adyar, Chennai 600020.Phone: 91-44-24460387

  16. Thank you Email – teginetwork@cag.org.in vishnu@cag.org.in

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