1. Consultancy Support to the
Haryana Electricity
Regulatory Commission
Findings of a Consumer Survey
and emerging
recommendations
29 September 2010, Haryana
Siddhartha Mitra, Director, CUTS International
CUTS International

2. Presentation Outline
● Rationale
● Objectives
● Scope
● Sample Design
● Survey Findings
 Consumer Awareness
 Regulation and Reforms
 Energy Issues
 Tariff and Open Access
 Metering and Billing
 Complaint Redressal
 Quality of Supply and Coverage
● Proposed Roadmap for Social Accountability
● Other Recommendations

3. Rationale for the Study
● Power sector reforms were initiated to ensure consumer
participation, promote competition and private investment
 Haryana Electricity Reform Act, 1997
• Restructuring of the Electricity Sector
• Constitution of an Electricity Regulatory Commission
• Creation of avenues for consumer participation in
regulation/reforms
● Given that a decade has passed, evaluation of the status of
consumer participation, as targeted, is due
 Extent to which consumers are aware of rights and
responsibilities
 Platforms and modes adopted by the regulatory agency to
foster consumer participation
 Associated changes in regulatory decision making and
improvement in quality and reliability of service

4. Objectives
● Assess the role and scope of HERC in promoting consumer
participation in regulatory decision making
● Review the status of consumer satisfaction and awareness
● Recommend measures to promote adequate public
participation in the sector

5. Scope: Coverage of Attributes of Consumer Empowerment
● Consumer awareness about HERC and its consultation
process, key regulations for consumer protection etc; and
resulting extent of consumer participation in regulatory issues
● Effectiveness of communication channels evolved by
distribution companies
● Consumer satisfaction in regard to quality of service, release
of new connections, metering and billing (efficiency, accuracy,
convenience)
● Consumer perceptions about effectiveness of complaint
registration and redressal
● Consumer awareness of the need for energy conservation and
its manifestation through practice

6. Sample Design
● Multi stage sampling which took into account geographical
spread, relative literacy and rural-urban divide to ensure
representative nature
● Separate surveys for a) domestic, agricultural and
commercial (DAC) consumers and b) industrial consumers
● Survey (a) targeted 1000 consumers by surveying 1134
respondents or around140 consumers per district
● Survey (b) targeted 28-29 respondents per district with
both LT and HT categories represented

7. SURVEY FINDINGS

8. Consumer Awareness and Participation: Regulatory and
Reform Issues
● Low awareness/participation about/in regulatory and
reform issues
 DAC consumers
• Only 2 percent aware of the constitution of HERC and almost none
about its functions and regulations
• Around 0.5 percent aware of websites of distribution companies or
HERC
 Industry consumers
• Only 14 percent aware of functions of HERC
• Only 14 percent aware about key regulations
• Only 3 percent visit the websites of HERC and distribution
companies
• Only 3 out of 227 respondents have ever made submissions to
HERC but none are satisfied with decisions

9. Consumer Awareness about Energy issues
● High awareness among DAC consumers about energy
efficiency issues
 90 percent are aware and 95 percent of those aware are using
equipment such as CFL lights, and energy efficient fans, coolers
etc
● However, among agricultural consumers about 64 percent
are unaware of the availability of energy efficient pump-sets
though 81 percent of those aware are using these
● Very high awareness about the need for energy conservation
among industrial consumers
 99 percent aware of the need
 62 and 50 percent in HT and LT categories respectively have
taken proactive steps

10. Consumer Awareness about Tariff and Open Access
Issues
● Lack of awareness among DAC consumers regarding tariff
structure and cost of supply issues with adverse implications
for efficient use of electricity
 87 percent not aware of increasing tariff slabs
 55 percent believe they are paying high tariffs and even in highly
subsidised agriculture only around 66 percent perceive tariffs as
‘just fair’
● Low awareness among industrial consumers about regulations
for enabling open access
 None of the respondents have applied for open access so far

11. Billing and Metering
● Meter related issues
 71 and 70 percent of DAC and industrial consumers respectively are
satisfied with meter functioning
 95 percent of DAC consumers report that meters are being read regularly
 High incidence of dissatisfaction with meter testing among DAC
consumers (71 percent dissatisfied) contrasted with predominant
satisfaction among industrial consumers (about 88 percent satisfied)
● Billing related issues
 98 and 97 percent of DAC and industry respondents respectively reported
regular billing while 64 and 67 percent respectively reported never having
received a faulty bill
 Problem among DAC consumers, especially uneducated ones, in
understanding bills
 Only 7 percent were able to understand bills completely
 Complex format and absence of details in vernacular language are some
underlying reasons

12. Complaint Redressal
● Dissatisfaction about redressal of metering and billing
complaints
 Among DAC complainants, 59 percent in regard to metering and more than 50
percent in regard to billing reported that redressal did not take place within the
HERC stipulated period of a week
 55 percent of industrial complainants were not satisfied with redressal of billing
complaints with 36 percent reporting that more than a week was taken to
attend to their complaints
 Average time taken to resolve a metering complaint in the case of industrial
consumers much higher than the limit specified by HERC though 67 percent
were resolved within this time limit
● Problems with Complaint Redressal Mechanisms
 98 percent of DAC consumers were unaware about Consumer Redressal
Forums while suggestions of 99 percent about CRMs were never taken
 88 and 72 percent of DAC and industrial complainants respectively were not
given a complaint registration number and many felt that complaints were not
being registered properly
 Very low use of modern means such as SMS, email and calling toll free etc.: for
example, 97 and 84 percent of industry and DAC complainants respectively
used ‘charged calls’ or personal visits

13. Quality of Supply and Coverage
● Inadequate supply and voltage fluctuations are the major
concerns of consumers
 44 percent of DAC respondents have experienced damage/burning of
equipment due to unsuitable voltage while 56 percent of industrial
respondents have reported experiences of inadequate voltage
 68 percent of DAC consumers and 58 percent of industrial consumers
experienced shutdowns of more than 10 and 6 hours respectively
 Most DAC and industrial consumers (98 and 95 percent respectively)
reported not getting prior information on shutdowns
● Release of new connections is widely perceived as non
transparent and costly (54 percent of DAC applicants over
last three years are dissatisfied)

14. Consumer Empowerment/ Satisfaction Indices: Findings
● Consumer empowerment index involving separate
evaluation of consumer awareness and consumer
satisfaction indices constructed for DAC consumers
● Only a consumer satisfaction index constructed for
industrial consumers
● Indices reiterate the findings of the previous slides
● Wide variation in indices across districts though not across
the jurisdictions of the two electricity distribution
companies

15. Proposed Road Map for Promotion of Social Accountability
● Envisaged outcomes
 Enhanced consumer welfare due to incorporation of consumer
preferences
 Improved service delivery and better complaint redressal
 Enduring partnership among consumers, regulators and
utilities would ensure a mechanism for continuous
improvement
● Three Phases (total of 3.5 years)
 Phase I (6 months)
 Supplement consumer survey results with follow up
interviews with regulator and focussed group discussions to
throw up problem areas
 Bring these to the attention of CSOs, consumer
organisations and interested individuals to encourage the
evolution of local champions

16. Proposed Road Map for Promotion of Social Accountability
contd..
● Three Phases (total of 3.5 years)
 Phase II (1 year): Creation of capacity of local champions in
 Undertaking audits of regulation and governance;
 Analysing audits and use of these to make recommendations
 Voicing these recommendations during interactions with
regulator and utilities
 Phase III (2 years): Handholding of the local champion during
one feedback cycle
 Conduct of a consumer survey
 Analysis of survey findings for formulation of
recommendations
 Voicing of recommendations

17. Other Recommendations
Intended
Improve
ment
Actions Needed by HERC Actions Needed by
Distribution Company
Actions needed on part of
consumers/CSOs
Improved
quality of
service
Collection of baseline data;
monitoring of data at utility
level; facilitation of
communication between
distribution companies and
consumers
Proper repair and
maintenance; monitoring
data at feeder level;
strengthening
communication and
obtaining consumer
feedback
Provision of feedback;
promotion of curbs on theft of
power and prevention of
energy wastage
Efficient
metering
and
billing
Monitoring and incentivising
compliance with SoP;
facilitation of 100 percent
metering
Greater transparency in
billing and metering;
promotion of use of
modern means for bill
payment; smart metering
initiatives
Provision of feedback to
distribution companies;
random check on energy
meters; promotion of regular
payment of dues and curbs on
meter tampering

18. Other Recommendations contd…
Intended
Improvem
ent
Actions Needed by HERC Actions Needed by
Distribution Company
Actions needed on part of
consumers/CSOs
Enhanced
consumer
awarenes
s
Use of vernacular in
communications; use of
mass media; geographical
dispersion of public
hearings; building of
capacity among select
stakeholder groups
Spreading useful information
through electricity bills, local
television and radio; support
to HERC for mentioned
capacity building
Active participation in public
hearings; generation of
consumer awareness; provision
of feedback to HERC and
distribution companies on key
issues
Active
consumer
participati
on
Training seminars and
workshops; appointment of
a consumer advocate
Provision of required
information to
consumers/CSOs; supporting
the HERC in mentioned
capacity building
As mentioned above; to not be
influenced by vested political
interests
Efficient
complaint
redressal
Compensation for non
compliance with SoP;
organisation of public
hearings and Lok Adalats;
publication of relevant
information regarding
facilities/regulations
Spreading consumer
awareness through billing
statements; proper
registration of consumer
complaints; computerisation
of complaint redressal system
Written complaints; promoting
the making of requests for
registration numbers; provision
of feedback to HERC/discoms
about systemic issues;
undertaking proper follow up of
complaint redressal

19. Thank You