Empowering People

The Electricity Governance Initiative

PRAYAS- PUNE ENERGYGROUP

Smita Nakhooda 11 May 2007

New York CSD 15

Urgent challenges of transitioning to clean energy

…and improving access for the poorest

A Governance Diagnosis

• Closed decision making process • Inadequate information available for

scrutiny• Little public debate of alternative reform

approaches• Inadequate consideration of public

concerns– Financial interests crowd out public interests

➔Adoption of untested reform prescriptions➔Weak democratic legitimacy

Towards Improved Governance

• Focus on the process of decision-making and implementation– How decisions are made shape what

decisions are made– Attention to transparency, scope for

public participation, mechanisms of accountability

• Good governance is necessary though not sufficient for good outcomes

The Electricity Governance Initiative

• Contribute to improved communication among stakeholders

• Provide a capacity building platform for improving practice

• Develop an operational framework to assess governance and help identify best practices

An assessment seeks to create a new dialogue between civil society and sector

actors

Research Team

A coalition of NGOs activein power sector issues

Advisory Panel Representatives of

Government, Regulator,Utilities, Private Sector

POLICY PROCESSES

Institutional/ Procedural-Legislative Committee-Executive-Independence -Reporting -Reform and policy change -Planning Agencies-Donor Agencies-Role of Consultants-Civil Society Capacity-Clarity of policy processes-Availability of supporting documentation - Media Coverage

Substantive Issues-Asset Evaluation-Privatization -Subsidies-IPPs-Competition

REGULATORY PROCESSES

Institutional / Procedural -Authority + Autonomy-Financial + Human Resources-Function/Jurisdiction-Conflict of interest-Appeals-Training-Use of consultants-Procedural clarity-Disclosure-Basis for decisions

Substantive Issues-Performance Reporting-Tariff Philosophy-Licensing-Consumer service and Quality of Supply

ENVIRONMENTAL+ SOCIAL ASPECTS

Institutional / Procedural -Clarity of environmental jurisdiction -Executive, regulatory & legislative mandates -Setting minimum environmental standards-Inclusion of environment in planning and reform- Access to redress on social or environmental grounds -Utility engagement w/ public-NGO capacity to address social + environmental issuesSubstantive Issues-Labor impacts-Access to electricity -Affordability-Project affected people- Renewables-Environmental & social performance reporting-Greenhouse gas reporting

BASELINE INDICATORS: MAPPING THE ELECTRICITY SECTOR

Do energy ministry staff think about environmental

issues?

Executive capacity to address environmental and social

considerations

Elements of Quality:

A budget to support social and environmental considerations

Dedicated staff

Expertise of staff

Training

Are environmental issues the electricity regulator’s concern?

Reference to environmental and social responsibilities

Considered in tariff setting

Access to information In official journals On the regulator’s website Low cost or free Disseminated through media Outreach to weaker groups

IndiaLow-

Medium

Thailand

Low

IndonesiaLow

Philippines

Low

x

xx

x

x

x

Regulator’s Environmental and Social Mandate

Are the public included in decisions about which energy technologies to

promote?

Considers at least three of following:

Co-generation Demand-side management Energy saving companies Grid renewables Distributed renewables Improved fossil fuel

technologies Pollution control technologies T&D losses

Stakeholder consultation Use of multiple participation

mechanisms

ThailandMedium

IndiaMedium

Philippines

Medium-High

xx

xxx

x

x

x

x

xx

x

x

x

x

x

Participation in policies promoting clean

technologies

Creating a Basis for Change, Generating Dialogue

The Indonesia Assessment has

Improved Transparency

Thai Assessment Draws Attention to EGAT

Corporatization Process

Attention to governance can help:

• Promote fair and innovative approaches to expanding access

• Address environmental, social, and economic impacts of new projects

• Enhance equity and affordability in tariffs

• Build consensus and credibility of decisions

The Electricity Governance Initiative

http://electricitygovernance.wri.org

Contact: Smita Nakhooda

snakhooda@wri.org