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
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