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Furthering TAP and Protecting Public Interest- Strategies and Challenges. Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan Delegates November 16-18, 2010, Pune, India Prayas Energy Group www.prayaspune.org/peg , energy@prayaspune.org. Regulation: Prayas perspective ..1.

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furthering tap and protecting public interest strategies and challenges

Furthering TAP and Protecting Public Interest- Strategies and Challenges

Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan DelegatesNovember 16-18, 2010, Pune, IndiaPrayas Energy Groupwww.prayaspune.org/peg, energy@prayaspune.org

Prayas - EGI Workshop Pune, Nov. 2010

regulation prayas perspective 1
Regulation: Prayas perspective ..1

We see it as:

“Ways and means employed by the society to ensure that rational decisions (from society’s point of view) are made.”

(Prayas Presentation at World Bank, 1997)

Hence… we see RCs as the key change in the governance set up of our country.

Prayas - EGI Workshop Pune, Nov. 2010

regulation prayas perspective 2
Regulation: Prayas perspective ..2
  • Importance of independent regulatory process
    • Natural monopoly and cost-plus tariff framework
    • Shortage scenario, poor service quality
    • History of vested interests misusing authority / sector for narrow gains
  • RC is a key governance institution that should
    • Balance interests of all stakeholders
    • Enhance accountability of utilities, government and other actors
    • Instill confidence through fair, rational decisions

Prayas - EGI Workshop Pune, Nov. 2010

strategy
Strategy
  • Create Spaces for TAP processes
    • Early, Pro-active, Consistent efforts
    • Supported through consensus building
  • Develop Capabilities
  • Strategic use of spaces
    • Maintain and strengthen spaces
    • Analysis based interventions
    • Supported through consensus building

Prayas - EGI Workshop Pune, Nov. 2010

strategy used by prayas
Strategy used by Prayas

Utilities

The State

Reg Com

(Public/Private)

(Government)

Wider Public

Threat of

/ Political

Analytical

Insistence on

Due Process

Analytical

Support and

Offensive

and Judicial

Legitimacy

Review

Efforts in All Areas

Prayas - EGI Workshop Pune, Nov. 2010

strategy challenges 1
Strategy & Challenges -1
  • Analytical Offensive
    • Identify the Crucial issues (gross inefficiencies)
    • High attention to issues with high potential to influence
    • Analyse with no vested interests – present or perceived
    • Mix of Adversarial and Facilitative interventions
      • Criticise and Suggest way forward
    • Proactive, advanced interventions
      • Framing the processes (eg. Rules & Regulations)
    • Focus on long term, balanced development of the sector which will benefit all consumer categories and environment. Special focus on small consumers
    • Facilitate innovation

Prayas - EGI Workshop Pune, Nov. 2010

analysis outputs
Analysis Outputs
  • Joint innovation
    • Electricity Governance Initiative, Electricity Supply Monitoring Initiative
  • Reports
    • Survey of Electricity Regulatory Commissions, Study of Distribution Quality of Service, Study of Bhivandi Distribution Franchisees
  • Policy & Regulatory Interventions
  • Books & booklets
  • Media articles

Prayas - EGI Workshop Pune, Nov. 2010

strategy challenges 2
Strategy & Challenges -2
  • Insistence on due process
    • Stringent monitoring
      • Utility performance
      • Compliance with Act, rules and regulations
    • Avoid ……
      • Verbal arguments, emotive approach
      • Alleging ill-intent

Prayas - EGI Workshop Pune, Nov. 2010

strategy challenges 3
Strategy & Challenges -3
  • Threat of Judicial/Analytical review
    • Be patient, consistent and persistent
    • Be realistic about expectations and constraints
      • Legal, Techno-economic, Administrative/ Managerial

Prayas - EGI Workshop Pune, Nov. 2010

strategy challenges 4
Strategy & Challenges -4
  • Wide support & Legitimacy
    • Consensus building
      • Work with all actors – Government, Utility, Regulator, Consumer organisations (farmers, industry organisations etc) Unions, & Media
    • De-mystify the sector
      • To give a perspective, not expertise
      • To be able to ask key questions
      • Convert to quantifiable identifiable impacts (eg. Talk about tariff impact, not just jargon based models)
      • Simplify, do not be simplistic
      • Repeat, repeat, repeat

Prayas - EGI Workshop Pune, Nov. 2010

lessons precautions 1
Lessons & Precautions …1
  • Strong intervention by NGOs / consumer bodies can lead to significant benefits

We need to ……

  • Engage and intervene early in the process
      • RC’s are more willing and open as they are also learning
      • Need to set right precedents
      • More responsive in the initial stage
  • Be realistic about expectations and constraints
      • Legal, Techno-economic, Administrative/ Managerial
  • Long term, comprehensive perspective and actions

Prayas - EGI Workshop Pune, Nov. 2010

lessons precautions 2
Lessons & Precautions …2
  • Put burden of proof on RCs / utilities
    • Ask key questions
    • Demand tariff / financial impacts of key decisions (AP – LOLP)
  • Ensure due process is followed
    • Public hearing
    • Transparency
  • Seek wider support
      • Other groups (unions, farmers & industry organizations etc.) & Media.
  • We need to avoid ……
    • Verbal arguments, emotive approach
    • Alleging ill-intent

Prayas - EGI Workshop Pune, Nov. 2010

the balance sheet
The balance sheet

+

Significant improvement in T, A, P

Exposing gross inefficiencies and initiating

remedial actions

-

Private utilities still remain unaccountable

Power purchase and capital expenditure accountability – continuous challenge

Not enough push for DSM / RE

Access (electrification) remains neglected issue

Prayas - EGI Workshop Pune, Nov. 2010