Consultancy Support to the Haryana Electricity Regulatory Commission
Findings of a Consumer Survey and emerging
recommendations
29 September 2010, HaryanaSiddhartha Mitra, Director, CUTS International
CUTS International
Presentation Outline
● Rationale ● Objectives ● Scope● Sample Design● Survey Findings
Consumer Awareness Regulation and Reforms Energy Issues Tariff and Open Access
Metering and Billing Complaint Redressal Quality of Supply and Coverage
● Proposed Roadmap for Social Accountability ● Other Recommendations
Rationale for the Study
● Power sector reforms were initiated to ensure consumer participation, promote competition and private investment
Haryana Electricity Reform Act, 1997• Restructuring of the Electricity Sector • Constitution of an Electricity Regulatory Commission • Creation of avenues for consumer participation in
regulation/reforms
● Given that a decade has passed, evaluation of the status of consumer participation, as targeted, is due
Extent to which consumers are aware of rights and responsibilities
Platforms and modes adopted by the regulatory agency to foster consumer participation
Associated changes in regulatory decision making and improvement in quality and reliability of service
Objectives
● Assess the role and scope of HERC in promoting consumer participation in regulatory decision making
● Review the status of consumer satisfaction and awareness
● Recommend measures to promote adequate public participation in the sector
Scope: Coverage of Attributes of Consumer Empowerment
● Consumer awareness about HERC and its consultation process, key regulations for consumer protection etc; and resulting extent of consumer participation in regulatory issues
● Effectiveness of communication channels evolved by distribution companies
● Consumer satisfaction in regard to quality of service, release of new connections, metering and billing (efficiency, accuracy, convenience)
● Consumer perceptions about effectiveness of complaint registration and redressal
● Consumer awareness of the need for energy conservation and its manifestation through practice
Sample Design
● Multi stage sampling which took into account geographical spread, relative literacy and rural-urban divide to ensure representative nature
● Separate surveys for a) domestic, agricultural and commercial (DAC) consumers and b) industrial consumers
● Survey (a) targeted 1000 consumers by surveying 1134 respondents or around140 consumers per district
● Survey (b) targeted 28-29 respondents per district with both LT and HT categories represented
SURVEY FINDINGS
Consumer Awareness and Participation: Regulatory and Reform Issues
● Low awareness/participation about/in regulatory and reform issues DAC consumers
• Only 2 percent aware of the constitution of HERC and almost none about its functions and regulations
• Around 0.5 percent aware of websites of distribution companies or HERC
Industry consumers • Only 14 percent aware of functions of HERC • Only 14 percent aware about key regulations • Only 3 percent visit the websites of HERC and distribution
companies • Only 3 out of 227 respondents have ever made submissions to
HERC but none are satisfied with decisions
Consumer Awareness about Energy issues
● High awareness among DAC consumers about energy efficiency issues
90 percent are aware and 95 percent of those aware are using equipment such as CFL lights, and energy efficient fans, coolers etc
● However, among agricultural consumers about 64 percent are unaware of the availability of energy efficient pump-sets though 81 percent of those aware are using these
● Very high awareness about the need for energy conservation among industrial consumers
99 percent aware of the need 62 and 50 percent in HT and LT categories respectively have
taken proactive steps
Consumer Awareness about Tariff and Open Access Issues
● Lack of awareness among DAC consumers regarding tariff structure and cost of supply issues with adverse implications for efficient use of electricity
87 percent not aware of increasing tariff slabs 55 percent believe they are paying high tariffs and even in highly
subsidised agriculture only around 66 percent perceive tariffs as ‘just fair’
● Low awareness among industrial consumers about regulations for enabling open access
None of the respondents have applied for open access so far
Billing and Metering● Meter related issues
71 and 70 percent of DAC and industrial consumers respectively are satisfied with meter functioning
95 percent of DAC consumers report that meters are being read regularly High incidence of dissatisfaction with meter testing among DAC
consumers (71 percent dissatisfied) contrasted with predominant satisfaction among industrial consumers (about 88 percent satisfied)
● Billing related issues 98 and 97 percent of DAC and industry respondents respectively reported
regular billing while 64 and 67 percent respectively reported never having received a faulty bill
Problem among DAC consumers, especially uneducated ones, in understanding bills
Only 7 percent were able to understand bills completely Complex format and absence of details in vernacular language are some
underlying reasons
Complaint Redressal ● Dissatisfaction about redressal of metering and billing
complaints Among DAC complainants, 59 percent in regard to metering and more than 50
percent in regard to billing reported that redressal did not take place within the HERC stipulated period of a week
55 percent of industrial complainants were not satisfied with redressal of billing complaints with 36 percent reporting that more than a week was taken to attend to their complaints
Average time taken to resolve a metering complaint in the case of industrial consumers much higher than the limit specified by HERC though 67 percent were resolved within this time limit
● Problems with Complaint Redressal Mechanisms 98 percent of DAC consumers were unaware about Consumer Redressal
Forums while suggestions of 99 percent about CRMs were never taken 88 and 72 percent of DAC and industrial complainants respectively were not
given a complaint registration number and many felt that complaints were not being registered properly
Very low use of modern means such as SMS, email and calling toll free etc.: for example, 97 and 84 percent of industry and DAC complainants respectively used ‘charged calls’ or personal visits
Quality of Supply and Coverage
● Inadequate supply and voltage fluctuations are the major concerns of consumers 44 percent of DAC respondents have experienced damage/burning of
equipment due to unsuitable voltage while 56 percent of industrial respondents have reported experiences of inadequate voltage
68 percent of DAC consumers and 58 percent of industrial consumers experienced shutdowns of more than 10 and 6 hours respectively
Most DAC and industrial consumers (98 and 95 percent respectively) reported not getting prior information on shutdowns
● Release of new connections is widely perceived as non transparent and costly (54 percent of DAC applicants over last three years are dissatisfied)
Consumer Empowerment/ Satisfaction Indices: Findings
● Consumer empowerment index involving separate evaluation of consumer awareness and consumer satisfaction indices constructed for DAC consumers
● Only a consumer satisfaction index constructed for industrial consumers
● Indices reiterate the findings of the previous slides
● Wide variation in indices across districts though not across the jurisdictions of the two electricity distribution companies
Proposed Road Map for Promotion of Social Accountability
● Envisaged outcomes Enhanced consumer welfare due to incorporation of consumer
preferences Improved service delivery and better complaint redressal Enduring partnership among consumers, regulators and
utilities would ensure a mechanism for continuous improvement
● Three Phases (total of 3.5 years)
Phase I (6 months) Supplement consumer survey results with follow up
interviews with regulator and focussed group discussions to throw up problem areas
Bring these to the attention of CSOs, consumer organisations and interested individuals to encourage the evolution of local champions
Proposed Road Map for Promotion of Social Accountability contd..● Three Phases (total of 3.5 years)
Phase II (1 year): Creation of capacity of local champions in Undertaking audits of regulation and governance; Analysing audits and use of these to make recommendations Voicing these recommendations during interactions with
regulator and utilities
Phase III (2 years): Handholding of the local champion during one feedback cycle
Conduct of a consumer survey Analysis of survey findings for formulation of
recommendations Voicing of recommendations
Other Recommendations
Intended Improvement
Actions Needed by HERC
Actions Needed by Distribution Company
Actions needed on part of consumers/CSOs
Improved quality of service
Collection of baseline data; monitoring of data at utility level; facilitation of communication between distribution companies and consumers
Proper repair and maintenance; monitoring data at feeder level; strengthening communication and obtaining consumer feedback
Provision of feedback; promotion of curbs on theft of power and prevention of energy wastage
Efficient metering and billing
Monitoring and incentivising compliance with SoP; facilitation of 100 percent metering
Greater transparency in billing and metering; promotion of use of modern means for bill payment; smart metering initiatives
Provision of feedback to distribution companies; random check on energy meters; promotion of regular payment of dues and curbs on meter tampering
Other Recommendations contd…
Intended Improvement
Actions Needed by HERC Actions Needed by Distribution Company
Actions needed on part of consumers/CSOs
Enhanced consumer awareness
Use of vernacular in communications; use of mass media; geographical dispersion of public hearings; building of capacity among select stakeholder groups
Spreading useful information through electricity bills, local television and radio; support to HERC for mentioned capacity building
Active participation in public hearings; generation of consumer awareness; provision of feedback to HERC and distribution companies on key issues
Active consumer participation
Training seminars and workshops; appointment of a consumer advocate
Provision of required information to consumers/CSOs; supporting the HERC in mentioned capacity building
As mentioned above; to not be influenced by vested political interests
Efficient complaint redressal
Compensation for non compliance with SoP; organisation of public hearings and Lok Adalats; publication of relevant information regarding facilities/regulations
Spreading consumer awareness through billing statements; proper registration of consumer complaints; computerisation of complaint redressal system
Written complaints; promoting the making of requests for registration numbers; provision of feedback to HERC/discoms about systemic issues; undertaking proper follow up of complaint redressal
Thank You