Macro Implications of Micro-Participation:Participatory Management of Electricity Distribution in Eastern India

Ashwini K Swainaks502@york.ac.uk

IPPG PhD Workshop3 March 2009

Research Context

The Problem: After six decades of public electrification, half of the population in India lives in

dark. The problem is growing worse as current rate of electrification has failed to

keep pace with population growth. Non-uniform and inefficient service deliverySource: Centralised planning, resource allocation and implementation Long route of accountabilityProposed Solution:

by putting poor people at the centre of service provision: by enabling them to monitor and discipline service providers, by amplifying their voice in policy making, and by strengthening the incentives for providers to serve the poor. (World Bank 2003: 1)

decentralisation and users’ participation through building micro-institutions

Research Questions

Can decentralisation and users’ participation ensure efficient and effective electricity service delivery in rural India?

Does participation in the micro-institutions has any democratic outcome?

Does the context, under which participation takes place, affect the outcomes?

Hypotheses

Decentralisation and users’ participation in electricity delivery will contribute to improvement in efficiency and effectiveness of the service delivery.

Participation in the micro-institutions will enhance political efficacy of the participants and foster the civic values they hold.

The process of users’ participation and its outcomes will be affected by the context under which participation takes place.

Methodology:

Case study approach

Methods of data collection

Semi-structured interviews

Observations

Analysis of documents

Interpretative and qualitative analysis

Case Studies

Micro-Privatisation of Electricity Distribution in Orissa:

First step, Village Electricity Committees were established to ensure participation of users

Second step, putting a micro-entrepreneur (franchisee) between the users’ committees and the service provider

Two patterns found: one, users’ committee and franchisee established (micro-privatisation); second, users’ committee established, but served by the utility (users’ participation)

Electricity Cooperative in Sundarbans, West Bengal:

Each plant has a Beneficiary Committee including all the users served by the plant

Beneficiary committees and the local government (Panchayat Samiti) constitute the cooperative

WBREDA remains the guiding body

Inefficiencies in Electricity Delivery

1. Rampant Electricity Theft

(Hooking, Meter tampering, Billing irregularities)

2. Lack of End-Use Efficiency

(No use of energy efficient products, Lack of load management)

3. Low Revenue Realisation

(Lack of willingness to pay, Irregular collection, Low collection efficiency)

4. High Technical Loss

(Poor maintenance, Lack of manpower, Lack of funds)

5. Poor Quality of Supply

(Load shedding, Breakdown, Low Voltage)

Sources Orissa (Micro-Privatisation)Franchisee & Users’ Committee

Orissa (Users’ Participation)Users’ Committee

Sundarbans (Cooperative)Cooperative & Beneficiary Committee

1 Hooking Meter tampering Billing irregularities

Completely stopped Few cases Completely checked

Completely stopped Few cases Completely checked

Did not exist Not Applicable Did not exist

2 No use of energy efficient products

No load management

Use of CFL in around 50% households

Yes, during evening

Use of CFL in around 50% households

Yes, during evening

Use of CFL (80%) and other energy efficient products

Not applicable

3 Lack of willingness to pay

Irregular collection Low collection

efficiency

Increased willingness

Monthly collection 95 % collection

efficiency

Increased willingness

Bi-monthly collectio 88% collection

efficiency

The problem did not exist

Monthly collection 98% collection

efficiency

4 Lack of proper maintenance

Lack of manpower

Lack of funds for maintenance

Regular maintenance

Private electricians hired

Users partly fund maintenance

Occasional maintenance

Private electricians hired

Users partly fund maintenance

Regular maintenance Does not exist

Does not exist

5 Load shedding Breakdowns Low voltage

No load shedding Ten cases/month Does not exist

No load shedding 25 cases/month Does not exist

Not applicable Not applicable Did not exist

Ineffectiveness in Electricity Delivery

1. Poor Quality of Service:

Less access to service provider

High level of corruption

Low responsiveness of service provider

2. Low Access:

High initial cost

High cost of service (monthly bill)

Cumbersome procedure of application for connection

Sources Orissa (Micro-Privatisation)Franchisee & Users’ Committee

Orissa (Users’ Participation)Users’ Committee

Sundarbans (Cooperative)Cooperative & Beneficiary Committee

1 Low access to provider

High corruption

Low responsiveness of provider

Franchisee is more accessible

Corruption has reduced

Franchisee is responsive

Utility remains less accessible

Corruption has reduced

Utility remains less responsive

Cooperative is more accessible

No corruption

Cooperative is responsive

2 High initial cost High cost of service

Cumbersome procedure of application

Low rate of household electrification (44%)

Reduced initial cost Reduction in monthly

bills Less paper work with

recommendation from the committee

71% household electrified

Reduced initial cost Reduction in monthly

bills Less paper work with

recommendation from the committee

63% household electrified

Low initial cost Users decide the

bill Not Applicable

20% households electrified through cooperative

Conclusion and Suggestions

Putting poor people at the centre of service delivery can work

It will work best when both the users and the provider are given equal status

It requires:

Formal legal status for the micro-institutions

Sharing of power and authority

Funding for their operation

Information sharing

Building a network of the micro-institutions

Special schemes with government subvention

Government funding for maintenance (till the utilities become financially viable)

Thank You