Presentation on Consumer Aspects
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Transcript Presentation on Consumer Aspects
Consultancy Support to
the HERC
Consumer Aspects –
Preliminary Findings of the
Consumer Survey
MERCADOS
ENERGY MARKETS INTERNATIONAL
Finding new paths for the energy market
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
● Public Hearing
● Notification of
Regulations
● Development of MYT Regulations –
G, T, D
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
structured survey
of
consumer
awareness
through
a
● Identify key barriers for effective consumer participation in
the State
● Recommend measures to
participation in the sector
promote
adequate
public
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
Ombudsman- a step forward
HERC has processed
consumers to participate
all
Redressal
Forums
orders/regulations
and
inviting
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
commercial consumers
domestic,
agricultural
and
● Separate questionnaire prepared for industrial consumers
● Questionnaires translated into local language (Hindi)
● Two days training
investigators
programme
conducted
for
field
April
2010,
17th March: Mercados EMI Office, Gurgaon,
18th March: Field Training and Visit (Sonipat)
● Interview method used for investigation
Data collection though interviews:
Tabulation:13-22nd April 2010
18th
March-12th
Consumer survey: methodology
Sample size:
●
Domestic, Agricultural & Commercial ~1100 (data collected 1134)
●
Industry 200 (data collected 227)
Number of respondents
Percentage shares
Consumer
Category
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%
1134
570
564
100%
100%
100%
Total
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
connection is a major concern
in
releasing
new
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
regularly
are
receiving
the
electricity
bills
● 95% out of total respondents were not aware of remote
metering technology
Industrial consumers: Key findings (contd...)
● 50% respondents experienced
equipment in last 3 years
damage/burnt
electrical
● 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 meter
testing
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
dissemination of key findings
Development of framework for sustained action: replication of
consumer satisfaction survey
key
stakeholders
and
wider
Thank You
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)
Mercados – Energy Markets International
C/ Orense, 34, 8th floor 28020 – Madrid, Spain
Tel.: (+34) 91 579 52 42 Fax: (+34) 91 570 35 00
Web: www.mercadosemi.es
Email: [email protected]
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 400 065
Tele fax: (+91) 22 2879 3510
Web: www.mercadosemi.es /asia
Email: [email protected]
Supporting Data and Detailed Analysis
Metering & Billing
Key Finding 1: About 71 percent of consumers are satisfied
with metering
Totally Dissatisfied
Total
Commercial
Partially satisfied
12%
16%
19%
12%
33%
16%
Agricultural 2% 17%
Domestic
Adequately satisfied
16%
38%
38%
29%
Highly satisfied
28%
52%
33%
39%
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)
No action
was taken
One day
Between
one week
and one day
Between
one month
and a week
More than a
month
20%
5%
SOP Regulations
provide a
maximum time
frame of 7 days
17%
13%
46%
Key Finding 3: There is a need to produce bills in simple,
Local language
C
om
pl
et
e
ly
6.50%
R
ea
so
na
bl
y
32.90%
P
ar
ti
al
ly
41.70%
N
ot
at
al
l
18.90%
Key Finding 4: Overall ranking of the metering and billing
process is not very satisfactory
Low
Overall,
commercial
consumers have
more concerns
Total
Commercial
16%
60%
26%
Agricultural 11%
Domestic
Average
16%
58%
60%
60%
High
23%
17%
28%
23%
Key Finding 5: Urban consumers are less satisfied than the
rural consumers on metering and billing issues
Low
Total
16%
Rural 12%
Urban
24%
Average
60%
60%
60%
High
23%
27%
16%
Quality of Service
Key Finding 1: No prior information on power shutdowns
is supplied to most of the consumers
Yes
2%
No
98%
Need for dissemination of vital information to consumers (sms,
advertisement in papers, etc)
Key Finding 2: Overall score for QOS is low for majority
Low
Total
Overall,
agricultural
consumers
have more
concerns with
QOS
Commercial
Agricultural
Domestic
Average
67%
54%
78%
67%
High
32% 1%
46%
0%
22%0%
32% 1%
Key Finding 3: the majority of consumers do not observe any
improvement in QOS over last 3 years
Deteriorated
Marginal improvement
Total
Mewat
Gurgaon
Fatehabad
56%
Karnal
35%
52%
46%
44%
2%
1% 1%
26%
0%
6% 0%
39%
24% 1%0%
75%
66%
8%
45%
28%
55%
Hisar
Jhajjar
Unchanged
Improved significantly
20%
52%
13%
1%
1% 2%
Yamuna Nagar
52%
38%
3%
7%
Sonipat
52%
36%
10% 1%
Awareness about Reforms & Regulations
Aware of HERC
Aware of
Websites of
HERC/utilities
Key Finding 1: Awareness about HERC is very low
0.03%
1.60%
• Set up a Consumer Welfare Fund to support capacity
building/awareness activities
• Involve Panchayats to ensure effective participation by local
institutions
Key Finding 2: There is adequate awareness on EE
Aware (Out of total)
Started use (Out of aware candidates)
O
ve
ra
ll
95%
89%
98%
om
m
er
ci
a
l
99%
C
96%
D
om
es
ti
c
A
gr
ic
u
lt
ur
a
l
92%
94%
87%
Key Finding 3: Overall ranking about information available to
consumer is low
Average
23%
High
0%
Low
77%
Need for wider dissemination of useful information to
consumers
Complaint Redressal Mechanism
Key Finding 1: Most of the consumers make personal visits
for registering complaint
Commercial
17%
75%
Agricultural
73%
Domestic
72%
Overall
72%
Personal visit
Register available in village
Email
11%
12%
12%
7% 0%
16%
0%
14% 2%
14%
2%
Call to distribution circle
Toll Free No
Make the compliant redressal process more consumer friendly
Key Finding 2: Most of the consumers are not given a
reference no for the complaint registered
A
lw
ay
s
3%
M
os
tl
y
4%
88%
N
ev
er
O
cc
as
io
n
al
ly
6%
Need for a accountable complaint redressal mechanism
Key Finding 3: awareness about complaint redressal forum as
well as ombudsman is very low
Awareness
about
Ombudsman
Awareness
about CGRF
1.00%
1.60%
Wider dissemination of information about the CRM
Key Finding 4: About 2/3rd consumers do not observe any
improvement in Complaint Redressal Mechanism over last 3
years
Overall
Commercial
Agricultural
Domestic
Deteriorated
18%
23%
21%
18%
Unchanged
48%
26%
50%
22%
54%
17%
47%
28%
Marginal improvement
8%
5%
8%
8%
Improved significantly
Tariff and other Related Issues
Key Finding 1: Majority of the commercial and domestic
consumers believe that they are paying higher tariff
Too high
Commercial
Agricultural
Domestic
Slightly high
39%
29%
17% 14%
33%
Just fair
Low
30% 1%
66%
24%
3%
43%
0%
Key Finding 2: Majority of the consumer applying for new
connection are not satisfied with the procedure
Highly
satisfied
20%
Not at all
34%
Satisfied
26%
Partially
satisfied
20%
Key Finding 3: Lack of transparency in releasing new
connection is the major concern of consumers
54%
16%
To
ta
l
30%
Too high charges
40% 0%
om
m
er
ci
a
l
60%
43%
14%
A
g
ri
cu
lt
ur
a
l
C
43%
Non transparent
process
D
om
es
ti
c
24%
57%
18%
Un-friendly
behaviour
Zonal Distribution
DHBVN: Sampling Districts
UHBVN
Literacy
(%age)
Index
score
Zone
(Literacy)
Eastern
Zone
Western
Zone
Consumpti
on
(Lakh
kWh)
Index
score
(Consu
mption)
Compos
ite
Score
Rankin
g
(Ascen
ding)
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
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
UHBVN
Literacy
(%age)
Zone
Eastern Zone
Western
Zone
Index
score
(Literacy)
Consum
ption
(Lakh
kWh)
Index
score
Composi
te Score
Ranking
(Ascend
ing)
(Consump
tion)
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
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