Transcript S 8 – Consumer protection and service quality improvement

Consumer protection and service
quality improvement mechanisms
Prayas - EGI Skill-share workshop for Tajikistan and
Kyrgyzstan Delegates
November 16-18, 2010, Pune, India
Prayas Energy Group
www.prayaspune.org/peg, [email protected]
Agenda
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Overview
Legal and regulatory framework
Effectiveness and shortcomings
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Consumer Expectations & agitations
Adequate & timely
availability of power
Reasonabl
e Tariff
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Good Service
Quality
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Service and supply related issues
Poor service quality:
 Billing errors, metering related issues, un-timely fault
resolution, etc
 Un-planned load Shedding, poor quality of supply, etc
 Lack of information/clarity about procedures such as
getting new connection, change in name or
connection type and so on
 Lack of access:
 Half the households do not get electricity which is a
high quality, cost effective form of energy
Poor and small consumers most effected
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Legal provisions related to supply
and service quality
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Electricity Act 2003
 “Section 57.(1) The Appropriate Commission may, after
consultation with the licensees and persons likely to be
affected, specify standards of performance of a licensee
or a class of licensees.”
 “Section 59 (1): ... furnish to the Commission the following
information, namely:
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(a) the level of performance achieved under sub-section (1) of the
section 57;
(b) the number of cases in which compensation was made under
subsection (2) of section 57 and the aggregate amount of the
compensation.”
“Section 59 (2): The Appropriate Commission shall at least
once in every year arrange for the publication, in such form
and manner as it considers appropriate, of such of the
information furnished to it under sub-section (1).”
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Legal provisions for grievance
redressal
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Section 42:
 Mandates utilities to establish forum for
redressal of grievances of the consumers
 Establishment of Ombudsman as highest
authority for consumer grievance
redressal
Provisions of Consumer Protection Act 1986,
override provisions of Electricity Act 2003
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Standards of performance
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MERC (Standards of Performance of
Distribution Licensees, Period for Giving
Supply and Determination of Compensation)
Regulations, 2005
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Period of giving supply
Quality of supply and system of supply
Restoration of power supply, in case of faults
Metering, reconnection
Consumer service norms, determination of
compensation
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Excerpt of MERC Standards of
performance published in 2005
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Supply Code provisions
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MERC (Electricity Supply Code and Other
Conditions of Supply) Regulations, 2005
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Methods of recovery of electricity charges
Intervals for billing
Disconnection procedure
Wiring of consumer’s premises
Basis for categorization of consumers into a
tariff category
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Excerpt of MERC Supply Code
published in 2005
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Three tier grievance redressal
mechanism structure
Consumer’s
grievance
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Each licensee to establish IGRC
& CGRF
CGRF
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Internal Grievance
Redressal Cell (IGRC)
Consumer Grievance
Redressal Forum (CGRF)
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Ombudsman
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Ombudsman
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Consists of Independent
Chairperson, utility’s
representative, and consumer
representative
Should decide the matter
within 2 months
Appointed by commission
Only consumer can appeal
against the decision of CGRF to
Ombudsman
Orders available on website
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Ombudsman website screenshot
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Forum wise status of compliance of orders
Sr.
no.
Name of
Forum
No.of orders
issued
TATA POWER
2
BES&T U
108
108 ( 100% )
3
RELIANCE
182
78 ( 43% )
78 ( 100% )
4
MULAPRAVAR
A
0 ( 0%)
NA
5
NAGPUR (U)
315
235 ( 75% )
218 ( 93% )
6
NAGPUR (R)
125
71 ( 57% )
7
AURANGABAD
240
220 ( 92% )
8
AKOLA
17
15 ( 88% )
9
LATUR
275
202 ( 73% )
10
BHANDUP
273
156 ( 57% )
91 ( 58% )
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NASHIK
137
104 ( 76% )
104 ( 100% )
12
KOLHAPUR
350
216 ( 62% )
97 ( 45% )
13
PUNE
78
37 ( 47% )
35 ( 95% )
14
RATNAGIRI
42
30 ( 71% )
28 ( 93% )
15
KALYAN
263
215 ( 82% )
2413 (100%)
1689 (70 %)
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2 ( 50% )
No. of orders
complied.
1
TOTAL:
4
No.of orders issued in
favour of consumers
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2 ( 100% )
108
( 100% )
71 ( 100% )
217 ( 99% )
15 ( 100% )
200
182
( 99% )
( 85% )
1446 (86 %)
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Regulatory Role in protecting
consumer interests
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Setting reasonable and affordable tariff that
reflects supply and service quality
Ensuring adequate power availability
Monitoring of supply and service quality
Ensuring compliance of utility with various
legal provisions and regulations
Conducting due public processes for all the
above functions
Increase awareness and transparency
encourage public participation
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Regulatory mandate
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Defining norms and standards for service
quality that utility must comply with
Establishing grievance redressal mechanism
that is simple, easy to access, quick in
response and economical for consumers
Establish monitoring mechanisms to ensure
compliance of standards and regulations and
effective grievance redressal
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Steps taken by MERC
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Load shedding protocol
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Equitable distribution of shortage c
Ceiling on number of load shedding hours in a given area
based on losses
Public hearings for deciding the protocol
Publishes all CGRF and Ombudsman orders on
website
Sou-moto hearings on important cases which affect
large number of consumers
Workshops for assessing CGRF performance and
issues faced by them
Amending regulations based on feedback from
consumers and other stakeholders
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Role of Civil Society
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Increasing awareness and participation
Consumer education through booklets and
pamphlets
Establishing consumer advocacy cells, consumer
groups/organizations that work on electricity
issues
Can make use of provisions under the Right to
Information Act if the utility is not cooperating
or unwilling to share information
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Barriers to be overcome
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Lack of awareness amongst consumers
Utilities do not perceive themselves as service
providers
Cost of intervention could be too high for the
poor
Utilities prefer litigations in High court instead of
complying with CGRF/ombudsman orders
Lack of effective mechanisms/systems for supply
and service quality monitoring
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Comments and discussion
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