The Electricity Governance Initiative

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The Electricity Governance Initiative
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The electricity sector is in flux

• Asia and worldwide
• Poorly performing public utilities
• Race to attract investment
• Adoption of electricity restructuring as a model

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A Rocky Road

• Limited progress increasing efficiency
• Investment deficit continues
• E.g. Controversial IPPs
• Absence of attention to social and environmental
  issues
• e.g. Rural electrification
• Failure to win political and public acceptance
• Restructuring initiatives challenged

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A Governance Diagnosis

• Closed decision making process
• Inadequate information available for scrutiny
• No public debate of alternative reform approaches
• Inadequate consideration of public concerns
• Financial interest crowded out public interest
• Adoption of untested reform prescriptions
• Weak democratic legitimacy

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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 but not sufficient
  for good outcomes
• Need for a common understanding of governance

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Goals of the Electricity Governance Initiative

• Contribute to improved communication among
  stakeholders on governance issues
• Develop an operational framework to assess
  governance and evaluate progress over time
• Provide an advocacy and capacity building
  platform for improvement
• Help identify best practices

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Evolution of EGI
Prayas Regulatory Survey
Power Politics
EGI
Access Initiative
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Building on Power Politics

• Six country study of the political economy of
  electricity reform
• Financial considerations dominate reform
• Equity and environment neglected
• Lack of democratic legitimacy

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Building on Prayas Survey of Regulators

• Survey of transparency, accountability,
  participation, and resources using a systematic
  process assessment
• Strong methodology
• Credible implementation
• Constructive interventions
• ? Significant impact

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Building on the Access Initiative

• Global coalition promoting participatory and
  accountable governance for sustainable
  development
• Comprehensive approach and indicator methodology
• Considers law as well as practice issues
• Implementation structure

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Implementation Methodology

• Coalition of researchers from NGOs, consumer
  groups etc.
• Advisory panel Sector officials, respected
  individuals, and senior experts
• Interviews and rigorous documentation

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Regulatory Process in India
Example of Assessment Outcome

• Strengths
• Authority / Jurisdiction (RP 2,3)
• Substantive functions, investigation, enforcement
• Autonomy (RP 6)
• job security,staff, financial resources
• Procedural certainty ( RP 10)
• Legal space / requirement for transparency and
  public participation (RP 12, 14, 18)

• Weaknesses
• Operationalisation of transparency and public
  participation requirements (RP 13, 15, 19)
• Limited efforts to build capacity of regulatory
  staff as well as civil society (RP 8,16)
  Transparency in Selection process (RP 4)
• Information about consultants role and inputs
  (RP 9)

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Progress

• 2003 2004 Develop and Review Pilot Indicator
  Toolkit
• 2005 Pilot Assessments in India, Indonesia,
  Thailand and the Philippines
• 2006 EGI Forum
• Upcoming
• Final revisions to the toolkit
• Analysis of the results of the pilot phase and
  approach

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Improving Governance

• Provides a framework to bring good governance
  debate from abstract to specifics
• A diagnostic tool to identify specific strengths
  and weaknesses
• Create space to discuss electricity in a broad,
  positive context