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Transcript of MERCADOS ENERGY MARKETS INTERNATIONAL Finding new paths for the energy market Consultancy Support to...
MERCADOS ENERGY MARKETS INTERNATIONAL Finding new paths for the energy market
Consultancy Support to Consultancy Support to the HERCthe HERC
Consumer Aspects – Preliminary Findings of the Consumer Survey
CUTS International
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
Current status of the assignment
Component Activities Completed Ongoing Activities
Component 1: Tariff Aspects
● Concept papers – on Generation, Transmission and Distribution MYT and Benchmarking
● Development of MYT Regulations – G, T, D
● Public Hearing ● Notification of
Regulations
Component 2: Intra-state ABT and Market Design
● Concept Paper on Market Design and Intra-state ABT
● Draft Regulations on Intra-state ABT under preparation
● Draft Regulations on Open Access also under preparation
Component 3: Consumer Aspects
● Concept Paper on Consumer Aspects
● Survey Methodology and Questionnaire
● Execution of Survey
● Development of detailed report on survey findings
● Development of road map for Social Accountability and Consumer Involvement
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
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
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
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
Consumer survey: methodology
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)
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 programme conducted 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
Consumer survey: methodology
Sample size:
● Domestic, Agricultural & Commercial ~1100 (data collected 1134)
● Industry 200 (data collected 227)
ConsumerCategory
Number of respondents Percentage shares
State UHBVN DHBVN State UHBVN DHBVN
Domestic 894 449 445 79% 79% 79%
Agricultural 131 72 59 12% 13% 10%
Commercial 109 49 60 10% 9% 11%
Total 1134 570 564 100% 100% 100%
Key survey findings: Domestic, Agricultural and Commercial Consumers
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
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
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
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
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
Key Findings: Industrial Consumers
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
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
Comparative Analysis of Consumer Perceptions
Indicator Industry Domestic etc.
Satisfied with metering 91% 72%
Satisfied with metertesting
86% 29%
Load shedding (for 10 hrs or more)
58% 68%
Aware of regulatory mechanism
14% (functions of HERC)
1.6% (aware about HERC)
Received complaint no. 40% 13%
View on tariff: High 53% 55%
Awareness on EE 53% (Star rating and labeling)
89% (CFL etc.)
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
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
Mercados – Energy Markets International
C/ Orense, 34, 8th floor 28020 – Madrid, SpainTel.: (+34) 91 579 52 42 Fax: (+34) 91 570 35 00Web: www.mercadosemi.es Email: [email protected]
Thank You
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 065Tele fax: (+91) 22 2879 3510
Web: www.mercadosemi.es /asia Email: [email protected]
CUTS International
D-217, Bhaskar Marg, Bani Park Jaipur 302 016, India Ph: 91.141.228 2821; Fx: 91.141.228 2733/2485; Em: [email protected]; [email protected] Web: www.cuts-ccier.org; www.cuts-international.org (Also at Geneva, London, Hanoi, Nairobi and Lusaka)
Supporting Data and Detailed Analysis
Metering & Billing
12%
2%
19%
12%
16%
17%
16%
16%
33%
29%
38%
33%
39%
52%
28%
38%
Domestic
Agricultural
Commercial
Total
Totally Dissatisfied Partially satisfied Adequately satisfied Highly satisfied
Key Finding 1: About 71 percent of consumers are satisfied with metering
46%
13%
17%
5%
20%
More than amonth
Betweenone month and a week
Betweenone week
and one day
One day
No actionwas taken
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
18.90%
41.70%
32.90%
6.50%
Not
at a
ll
Partia
lly
Reaso
nabl
y
Com
plet
ely
Key Finding 3: There is a need to produce bills in simple,Local language
16%
11%
26%
16%
60%
60%
58%
60%
23%
28%
17%
23%
Domestic
Agricultural
Commercial
Total
Low Average High
Key Finding 4: Overall ranking of the metering and billing process is not very satisfactory
Overall, commercial consumers have more concerns
24%
12%
16%
60%
60%
60%
16%
27%
23%
Urban
Rural
Total
Low Average High
Key Finding 5: Urban consumers are less satisfied than the rural consumers on metering and billing issues
Quality of Service
Yes2%
No98%
Key Finding 1: No prior information on power shutdownsis supplied to most of the consumers
Need for dissemination of vital information to consumers (sms, advertisement in papers, etc)
67%
78%
54%
67%
32%
22%
46%
32%
1%
0%
0%
1%
Domestic
Agricultural
Commercial
Total
Low Average High
Key Finding 2: Overall score for QOS is low for majority
Overall, agricultural consumers have more
concerns with QOS
52%
52%
44%
66%
75%
55%
46%
52%
56%
36%
38%
52%
20%
24%
39%
28%
45%
35%
10%
3%
1%
13%
1%
6%
26%
1%
8%
1%
7%
2%
1%
0%
0%
0%
1%
2%
Sonipat
Yamuna Nagar
Karnal
Jhajjar
Hisar
Fatehabad
Gurgaon
Mewat
Total
Deteriorated UnchangedMarginal improvement Improved significantly
Key Finding 3: the majority of consumers do not observe any improvement in QOS over last 3 years
Awareness about Reforms & Regulations
1.60%
0.03%
Aw
are
of
HER
C
Aw
are
of
Websi
tes
of
HER
C/u
tili
ties
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
87%
92%
99%
89%
94%
96%
98%
95%
Dom
estic
Agricul
tura
lCo
mm
ercial
Ove
rall
Aware (Out of total) Started use (Out of aware candidates)
Key Finding 2: There is adequate awareness on EE
High0%Average
23%
Low77%
Key Finding 3: Overall ranking about information available to consumer is low
Need for wider dissemination of useful information to consumers
Complaint Redressal Mechanism
72%
72%
73%
75%
14%
14%
16%
12%
12%
11%
17% 7%
2%
2%
0%
0%
Overall
Domestic
Agricultural
Commercial
Personal visit Call to distribution circleRegister available in village Toll Free NoEmail
Key Finding 1: Most of the consumers make personal visits for registering complaint
Make the compliant redressal process more consumer friendly
88%
6%
4%
3%
Nev
erOcc
asio
nally
Mos
tly
Alway
s
Key Finding 2: Most of the consumers are not given a reference no for the complaint registered
Need for a accountable complaint redressal mechanism
1.60%
1.00%
Awarenessabout CGRF
Awarenessabout
Ombudsman
Key Finding 3: awareness about complaint redressal forum as well as ombudsman is very low
Wider dissemination of information about the CRM
18%
21%
23%
18%
47%
54%
50%
48%
28%
17%
22%
26%
8%
8%
5%
8%
Domestic
Agricultural
Commercial
Overall
Deteriorated Unchanged Marginal improvement Improved significantly
Key Finding 4: About 2/3rd consumers do not observe any improvement in Complaint Redressal Mechanism over last 3 years
Tariff and other Related Issues
33%
17%
39%
24%
14%
29%
43%
66%
30%
0%
3%
1%
Domestic
Agricultural
Commercial
Too high Slightly high J ust fair Low
Key Finding 1: Majority of the commercial and domestic consumers believe that they are paying higher tariff
Satisfied26%
Highly satisfied
20%
Not at all34%
Partially satisfied
20%
Key Finding 2: Majority of the consumer applying for new connection are not satisfied with the procedure
24%
43%
60%
30%
57%
43%
40%
54%
18%
14%
0%
16%
Domes
ticAgric
ultura
lCom
mer
cial
Tota
l
Too high charges
Non transparentprocess
Un-friendlybehaviour
Key Finding 3: Lack of transparency in releasing new connection is the major concern of consumers
Zonal Distribution
DHBVN: Sampling Districts
Zone
UHBVN Literacy (%age)
Index score
Consumption (Lakh kWh)
Index score
Composite Score
Ranking (Ascending)(Literacy) (Consum
ption)
Eastern Zone
Faridabad 70.79 9.35 20454 7.45 8.40 5
Palwal 70.79 9.35 2903 1.06 5.20 2
Gurgaon 63.61 8.40 27472 10.00 9.20 6
Mewat 63.61 8.40 729 0.27 4.33 1
Mahendergarch 70.43 9.30 4454 1.62 5.46 3
Rewari 75.75 10.00 6693 2.44 6.22 4
Western Zone
Sirsa 61.2 8.98 8401 7.71 8.34 2
Hisar 65.85 9.66 10900 10.00 9.83 4
Fatehabad 58.16 8.53 6895 6.33 7.43 1
Bhiwani 68.17 10.00 8405 7.71 8.86 3
UHBVN: Sampling Districts
Zone
UHBVN Literacy (%age)
Index score Consumption (Lakh kWh)
Index score
Composite Score
Ranking (Ascending)
(Literacy) (Consumption)
Eastern Zone
Panchkula* 76.54 10.00 11391 8.37 9.19 3
Yamunanagar 72.20 9.43 10257 7.54 8.49 1
Ambala 76.20 9.96 11391 8.37 9.16 2
Karnal 68.20 8.91 13608 10.00 9.46 5
Panipat 69.75 9.11 12861 9.45 9.28 4
Western Zone
Kurukshetra 70.04 9.15 10066 9.68 9.41 5
Rohtak 74.56 10.00 4941 4.75 7.37 2
Sonepat 73.71 9.89 10404 10.00 9.94 6
Jhajjar 72.48 9.72 4632 4.45 7.09 1
Kaithal 59.5 7.98 9358 8.99 8.49 4
Jind 62.8 8.42 6783 6.52 7.47 3
Blocks Covered
● Yamunanagar – Jagadri, Chhachhrauli, Radaur● Hisar – Hisar, Hansi, Adampur● Sonepat – Sonepat, Gannur, Gohana● Karnal – Karnal, Nilokhri, Asand● Jhajjar – Jhajjar, Salahwas, Beri● Gurgaon – Gurgaon, Sohna, Pataudi ● Fathehabad – Fathehabad, Ratiya, Tohana● Mewat – Firozpur Jhirka, Nuh, Tauru