Consultancy Support to the HERC

1. Consultancy Support to the HERC Consumer Aspects – Preliminary Findings of the Consumer Survey CUTS International

2. Presentation 0utline • Update of the assignment • Objectives (Consumer Aspects Components) • Overall approach • Key findings of concept paper • Consumer survey -Methodology -Questionnaire and data collection -Survey findings • Recommendations • Way forward

3. Current status of the assignment

4. Objectives • Assess the scope and role of HERC in promoting consumer participation in the regulatory decision making process • Review the state of consumer satisfaction in Haryana • Assess the level of consumer awareness through a structured survey • Identify key barriers for effective consumer participation in the State • Recommend measures to promote adequate public participation in the sector

5. Overall Approach Review of literature, statutes, policy, regulations Comparison with best practices at national/international level Identification of gaps & scope for improvement (Concept Paper) Consumer perceptions: satisfaction and awareness (Survey) Summary and conclusions Development of roadmap for social accountability and consumer involvement

6. Concept paper: key findings • Haryana: pioneer state to initiate reforms at state level • Increased scope for consumer participation • Key regulations notified to empower consumers (CBR, SOPs, Supply code, CRM etc.) • Constitution of Complaint Redressal Forums and Ombudsman- a step forward • HERC has processed all orders/regulations inviting consumers to participate

7. Concept paper: key findings (contd..) • Weak participation in public hearings and inadequate geographical coverage • Inadequate written comments on the draft proposals • Lack of effective consumer representation in SAC • Lack of independence of Complaint Redressal Mechanism (controlled by Discoms) • No mechanism for effective monitoring of SOPs • Lack of awareness among consumers on key issues

8. Consumer survey: methodology

9. Consumer survey: sampling methodology • Sampling methodology (Multi-stages, PPS, random) • Geographical representation • Each Discoms area was divided into 2 zones • 2 districts chosen from each zone based on chosen criteria • Criteria: Composite ranking score of Literary rate & consumption (Click for details) • Most of the blocks covered in each sample districts • Rural/urban ratio of the state was maintained - About 20% female respondents were targeted • Agricultural sector (both metered and un-metered consumers covered)

10. Consumer survey: questionnaires and data collection • Base questionnaire covered domestic, agricultural and commercial consumers • Separate questionnaire prepared for industrial consumers • Questionnaires translated into local language (Hindi) • Two days training programmeconducted for field investigators • 17th March: Mercados EMI Office, Gurgaon, • 18th March: Field Training and Visit (Sonipat) • Interview method used for investigation • Data collection though interviews: 18th March-12th April 2010, Tabulation:13-22nd April 2010

11. Consumer survey: methodology Sample size: • Domestic, Agricultural & Commercial ~1100 (data collected 1134) • Industry 200 (data collected 227)

12. Key survey findings: Domestic, Agricultural and Commercial Consumers

13. Metering & Billing: Key Findings About 71% consumers are satisfied with metering Agricultural consumers are more satisfied than domestic and commercial SOPs are not being implemented comprehensively Only a few consumers can understand Electricity bill completely Overall Score for metering & billing is not satisfactory

14. Quality of Service: Key Findings Overall score for quality of service is low Load shedding and poor voltage quality are major concerns Agricultural and domestic consumers facing more power cuts No prior information about load shedding to most of consumers Wider variations in QOS across the districts

15. Awareness on Reforms & Regulation: Key Findings The awareness level on reforms process is very low A very few consumers are aware of websites of HERC/utility None of the consumers visited website of HERC/utility Most of the consumers are aware of energy efficient equipment Overall score for information made available to consumers is low

16. Complaint Redressal Mechanism: Key Findings The awareness about CRF and Ombudsman is too low Because of poor awareness level, very few consumers approached to CRF Traditional method such as ‘personal visit’ still dominating for registering complaint Consumers are not given a reference number for the complaint registered with utility

17. Awareness on Tariff and Related Issues: Key Findings Majority of commercial consumers believe that tariff is High About two-third agricultural consumers observed the tariff Just Fair Majority of consumers not satisfied with the procedure for new connection Overall non transparent process in releasing new connection is a major concern

18. Key Findings: Industrial Consumers

19. Industrial consumers: Key findings 86% respondents (out of 14) were satisfied with meter testing procedure 74% of the respondents believe that the QOS remained unchanged over the last 3 years 93% consumers are receiving the electricity bills regularly 95% out of total respondents were not aware of remote metering technology

20. Industrial consumers: Key findings (contd...) 50% respondents experienced damage/burnt electrical equipment in last 3 years 95% respondents were never given advance information of power shut downs Awareness about HERC: (functions-14%, regulation 6%) Open access: 71% believe it can help in reducing cost None of the consumers applied for open access

21. Comparative Analysis of Consumer Perceptions

22. Broad recommendations HERC to adopt a proactive role in promoting consumer participation Concrete steps should be taken to generate adequate awareness and involvement Process of public hearing to be held in rural areas as well Involvement and nurturing active consumers groups/CSOs Translation of key documents in vernacular Complaint redressal mechanism to be made more effective with generation of compliance reports from time to time Effective compliance of standards of performance through appropriate measures (MYT Regulations) Wider dissemination of key regulatory information including tariff filings

23. Next Steps Report on detailed consumer survey findings Calculation of consumer satisfaction index and sub-indexes (such as those related to metering, billing, etc) Preparation of Roadmap for Social Accountability Outlining the actions, key responsibilities and timelines for achieving increased consumer participation Discussions with the Commission and select Consumer Associations On the findings and the road map including aspects that require further elaboration Mechanisms to improve consumer involvement and satisfaction Finalization of the above documents Suggested action points for key stakeholders and wider dissemination of key findings Development of framework for sustained action: replication of consumer satisfaction survey

24. Thank You CUTS International D-217, Bhaskar Marg, Bani Park Jaipur 302 016, India Ph: 91.141.228 2821; Fx: 91.141.228 2733/2485; Em: rk2@cuts.org; c-cier@cuts.org Web: www.cuts-ccier.org; www.cuts-international.org (Also at Geneva, London, Hanoi, Nairobi and Lusaka) Mercados – Energy Markets International C/ Orense, 34, 8th floor 28020 – Madrid, Spain Tel.: (+34) 91 579 52 42 Fax: (+34) 91 570 35 00 Web: www.mercadosemi.es Email: info@mercadosemi.es Mercados – Energy Markets India Private Limited Gurgaon: 206, Tower B, Millennium Plaza, Sec 27, Gurgaon – 122002, India Tel.: (+91) 124 424 1750 Fax: (+91) 124 424 1751 Mumbai: 110 Master Mind I, Royal Palms, Aarey Milk Colony, Goregaon (East) Mumbai 400 065 Tele fax: (+91) 22 2879 3510 Web:www.mercadosemi.es /asia Email: ade@mercadosemi.es

25. Supporting Data and Detailed Analysis

26. Metering & Billing

27. Key Finding 1: About 71 percent of consumers are satisfied with metering

28. Key Finding 2: For about 60 percent of the consumers, metering complaints were addressed more than a week later (Out of 127 who registered a meter related complaint) SOP Regulations provide a maximum time frame of 7 days

29. Key Finding 3: There is a need to produce bills in simple, Local language

30. Key Finding 4: Overall ranking of the metering and billing process is not very satisfactory Overall, commercial consumers have more concerns

31. Key Finding 5: Urban consumers are less satisfied than the rural consumers on metering and billing issues

32. Quality of Service

33. Key Finding 1: No prior information on power shutdowns is supplied to most of the consumers Need for dissemination of vital information to consumers (sms, advertisement in papers, etc)

34. Key Finding 2: Overall score for QOS is low for majority Overall, agricultural consumers have more concerns with QOS

35. Key Finding 3: the majority of consumers do not observe any improvement in QOS over last 3 years

36. Awareness about Reforms & Regulations

37. Key Finding 1: Awareness about HERC is very low • Set up a Consumer Welfare Fund to support capacity building/awareness activities • Involve Panchayats to ensure effective participation by local institutions

38. Key Finding 2: There is adequate awareness on EE

39. Key Finding 3: Overall ranking about information available to consumer is low • Need for wider dissemination of useful information to consumers

40. Complaint Redressal Mechanism

41. Key Finding 1: Most of the consumers make personal visits for registering complaint Make the compliant redressal process more consumer friendly

42. Key Finding 2:Most of the consumers are not given a reference no for the complaint registered Need for a accountable complaint redressal mechanism

43. Key Finding 3: awareness about complaint redressal forum as well as ombudsman is very low • Wider dissemination of information about the CRM

44. Key Finding 4: About 2/3rd consumers do not observe any improvement in Complaint Redressal Mechanism over last 3 years

45. Tariff and other Related Issues

46. Key Finding 1: Majority of the commercial and domestic consumers believe that they are paying higher tariff

47. Key Finding 2: Majority of the consumer applying for new connection are not satisfied with the procedure

48. Key Finding 3: Lack of transparency in releasing new connection is the major concern of consumers

49. Zonal Distribution

50. DHBVN: Sampling Districts