Consumer protection and service quality improvement mechanisms Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan Delegates November 16-18,

Consumer protection and service quality improvement mechanisms

Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan Delegates

November 16-18, 2010, Pune, India

Prayas Energy Groupwww.prayaspune.org/peg, energy@

prayaspune.org

Agenda

Overview Legal and regulatory framework Effectiveness and shortcomings

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Consumer Expectations & agitations

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Adequate & timely availability of power

Good Service Quality

Reasonable Tariff

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 energyPoor and small consumers most effected

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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).”

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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

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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 compensation16 Nov 2010 Prayas EGI Workshop 7

Excerpt of MERC Standards of performance published in 2005

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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

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Excerpt of MERC Supply Code published in 2005

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Three tier grievance redressal mechanism structure

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

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Consumer’s grievance

Internal Grievance Redressal Cell (IGRC)

Consumer Grievance Redressal Forum

(CGRF)

Ombudsman

Ombudsman website screenshot

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Forum wise status of compliance of orders

Sr. no.

Name of Forum

No.of orders issued

No.of orders issued in favour of consumers

No. of orders complied.

1 TATA POWER

4 2 ( 50% ) 2 ( 100% )

2 BES&T U 108 108 ( 100% ) 108 ( 100% )

3 RELIANCE 182 78 ( 43% ) 78 ( 100% )

4 MULAPRAVARA

4 0 ( 0%) NA

5 NAGPUR (U) 315 235 ( 75% ) 218 ( 93% )

6 NAGPUR (R) 125 71 ( 57% ) 71 ( 100% )

7 AURANGABAD

240 220 ( 92% ) 217 ( 99% )

8 AKOLA 17 15 ( 88% ) 15 ( 100% )

9 LATUR 275 202 ( 73% ) 200 ( 99% )

10 BHANDUP 273 156 ( 57% ) 91 ( 58% )

11 NASHIK 137 104 ( 76% ) 104 ( 100% )

12 KOLHAPUR 350 216 ( 62% ) 97 ( 45% )

13 PUNE 78 37 ( 47% ) 35 ( 95% )

14 RATNAGIRI 42 30 ( 71% ) 28 ( 93% )

15 KALYAN 263 215 ( 82% ) 182 ( 85% )

TOTAL: 2413 (100%) 1689 (70 %) 1446 (86 %)16 Nov 2010 Prayas EGI Workshop 13

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

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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

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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

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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

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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

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Comments and discussion

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