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The Regional Pricing Strategy workshop

Background

Workshops on multi-year tariffs were organized in Delhi and Islamabad in 2001 under the aegis of SAFIR. These workshops established the need for such a pricing mechanism. It has now been seen that many regulatory commissions in South Asia have attempted to move away from annual tariff determination to a multi-year framework. This includes regulators in India and NEPRA in Pakistan. Many others are considering adopting such a framework. Governments are also viewing this framework as a possible option for the overall benefit of the power sector.

In view of the above, there is now a need to review the status and progress since 2001. With the Electricity Bill 2003 and the National Tariff Policy in India, it is important to view the issue of multi-year tariffs in the light of these developments. The difficulties and issues in the implementation of a multi-year tariff framework also need to be discussed and solutions found. The workshop of August 2003 thus, seeks to be the road ahead from the workshops conducted in Delhi and Islamabad in August 2001.

Agenda

Day 1
8:30 – 09:00 Registration
9:00 – 09:30

Inaugural Session

Speakers:
Dr R K Pachauri
Director-General, TERI
Dr Leena Srivastava
Executive Director, TERI
Mr G P Rao
Chairman, Andhra Pradesh Electricity Regulatory Commission & Chairman, Forum Of Indian Regulators

9:30 – 11:00

Session 1: Review of developments in multi-year tariff (MYT) framework in South Asia

Speakers:
Chairperson: Dr. A R Sihag
Director, Regulatory Studies and Governance Division, TERI
Mr Vivek Sharma and Ms Manisha Kabra [Presentation]
Area Convenors, TERI
Mr R Sridharan [Presentation]
Secretary, Karnataka Electricity Regulatory Commission
Mr Jagdish Sagar [Presentation]
CMD Delhi Transco Ltd.

11:00 – 11:30

Tea/Coffee

11:30 – 13:00

Session 2: Options for MYT

This session focused on issues that are crucial in the implementation of a multi-year tariff framework. Issues like efficiency measurement, determination of profits; pass through costs, controllable and non-controllable was discussed.

Speakers:
Chairperson: Mr G P Rao
Chairman, Andhra Pradesh Electricity Regulatory Commission & Chairman, Forum Of Indian Regulators
Mr J L Bajaj [Presentation]
Chairman, Uttar Pradesh Electricity Regulatory Commission
Mr Martin A Rodríguez Pardina [Presentation]
Former Executive Director, Economic Regulation Research Centre

13:00 –13:30

Lunch

15:30 – 16:00

Session 3: The South Asian experience – Case studies

The multi-year tariff approach has been attempted in some places in South Asia. In this session, the experience and implementation of this framework in Delhi and Karachi was discussed.

Speakers:
Chairperson: Mr Clive Harris
Private Participation in Infrastructure, World Bank
Mr Ian Alexander [Presentation]
South Asia Energy and Infrastructure Unit, World Bank
Mr V K Sood [Presentation]
Chairman, Delhi Electricity Regulatory Commission

15:30 – 16:00

Tea/Coffee

16:00 – 17:30

Session 4: Multi year tariffs: International experiences and case studies

The participants were given an insight into the experience of countries outside the South Asia region, on the MYT. In particular, the experience of Brazil, Argentina and Eastern Europe was discussed. The approaches adopted by these countries and the problems in implementation were discussed.

Speakers:
Chairperson: Dr A R Sihag
Director, Regulatory Studies and Governance Division, TERI
Mr Martin A Rodríguez Pardina [Presentation]
Former Executive Director, Economic Regulation Research Centre
Mr Ian Alexander
South Asia Energy and Infrastructure Unit, World Bank

17:30 – 18:00

Summing up Day 1

This session summed up the discussions of the day. As part of this, the session also set the scene for the discussions scheduled to take place on Day 2. Break out session and topics were discussed and teams were formulated

Speaker:
Mr Clive Harris
Private Participation in Infrastructure, World Bank

19:30 Reception cum Dinner hosted by SAFIR at TERI RETREAT, NCR of Delhi

 

Day 2
9:00 –10:30

Session 4: Break-out session - Issues in implementation of multi year tariff

Participants were divided into four groups to discuss strategies and draft recommendations with regard to the implementation of MYT. Each group was given certain specific questions to deliberate upon.

10:30 – 11.00 Tea/Coffee
11:00 – 12:30

Session 5: Panel discussion: way forward on multi year tariff [Presentation]
Each group made presentation on the recommendation of the various breakout questions

Mr Ian Alexander
South Asia Energy and Infrastructure Unit, World Bank
Mr G P Rao
Chairman, APERC
Mr R Sridharan
Secretary, KERC
Mr J L Bajaj
Chairman, UPERC
Mr P K Mehrotra
Chairman, MPERC

12:30 – 13:30

Session 6: Economic & financial Model

Mr Martin A. Rodríguez Pardina [Presentation]
Former Executive Director, Economic Regulation Research Centre

13:30 – 14.30 Conclusion and Lunch

 

List of speakers

Mr Ian Alexander
Regional Coordinator East and South Asia
PPIAF Program Management Unit
C/o World Bank Liaison Office
10, Shenton Way,#15-08
MAS Building
Singapore 079117
Tel: 65-324 1612
Fax:65-324 4615
E-mail: ialexander@worldbank.org

Mr J L Bajaj
Chairman
Uttar Pradesh Electricity Regulatory Commission
Kisan Mandi Bhawan
2nnd Floor, Gomti Nagar
Lucknow – 226 010
Tel: 0522 720427
Fax: 0522 720423

Mr Clive Harris
Private Sector Advisory Services
MSN – 19-905
World Bank
1818H Street
Washington D C 20433
USA
Tel: 202 –473 9587
Fax: 202 522 3481
E-mail: charris@worldbank.org

Dr R K Pachauri
Director-General
The Energy and Resources Institute
Darbari Seth Block
Habitat Place, Lodi Road
New Delhi - 110 003
Tel:24682100/24682111
Fax: 24682144/24682145
E-mail: pachauri@teri.res.in

Mr Martín Augusto Rodríguez Pardina
Former Executive Director
Economic Regulation Research Centre
Av. Córdoba 1883 4° 7 (1120)
Capital Federal, Argentina
Tel/Fax: (+54 11) 43120366
E-mail: marp@macroenergia.com, or marp@velcom.com.ar

Mr G P Rao
Chairman
Andhra Pradesh Electricity Regulatory Commission
5th Floor, # 11-4-660
Singeri Bhavan, Red Hills, Lakdikapul
Hyderabad – 500 004
Tel: 040 3397393
Fax: 0403397489
E-mail: gummalla98@hotmail.com

Mr Jagdish Sagar
Chairman and Managing Director
Delhi Transco Ltd.
Shakti Sadan, Kotla Road
New Delhi - 110 002
Tel: 23231748/23215198
Fax: 23234640

Dr A R Sihag
Director, Regulatory Studies & Governance Division
The Energy and Resources Institute
Darbari Seth Block, Habitat Place
Lodi Road, New Delhi - 110 003
Tel: 24682100/24682111
Fax: 24682144/24682145
E-mail: arsihag@teri.res.in

Mr V K Sood
Chairman
Delhi Electricity Regulatory Commission
Vinayamak Bhawan
C Block , Shivalik
Near Malviya Nagar
New Delhi - 110 0017
Tel: 26673607
Fax: 26673608

Mr R Sridharan
Secretary
Karnataka Electricity Regulatory Commission
6th&7th Floor, Mahalaxmi Chambers
No. 9/2, MG Road
Bangalore - 560001
Tel: 080-5320213/5320214
Fax: 080-5320338

Dr Leena Srivastava
Executive Director
The Energy and Resources Institute
Darbari Seth Block
Habitat Place, Lodi Road
New Delhi - 110 003
Tel: 24682100/24682111
Fax: 24682144/24682145
E-mail: leena@teri.res.in

List of participants

Mr Shamit Chakravarti
Programs Officer
Asian Development Bank
4, San Martin Marg
Chanakyapuri, New Delhi
Tel: 24107200
Fax: 26870955
E-mail: adbinrm@adb.org

Ms Geeta Gauri
Director (Tariff)
Andhra Pradesh Electricity Regulatory Commission
5th Floor, # 11-4-660
Singeri Bhavan, Red Hills, Lakdikapul
Hyderabad – 500 004
Tel: 040 3397393
Fax: 0403397489

Mr D K Gupta
Director (TFA)
Himachal Pradesh Electricity Regulatory Commission
Keonthal Commercial Complex
Khalini, Shimla - 171 002
Tel: 0177-2627262
Fax: 0177-2627162

Shri Mukesh Kumar Gupta
Dy. Director (Tariff - Accounts & Financial Analysis)
Delhi Electricity Regulatory Commission
Vinayamak Bhawan, C Block
Shivalik, Malviya Nagar
New Delhi - 110017
Tel: 26683877
Fax: 26673608

Shri S P Gupta
General Manager (Tech)
Delhi Transco Ltd.
Shakti Sadan, Kotla Road
New Delhi - 110 002
Tel: 23231748/23215198
Fax: 23234640

Mr Jayanat Herat
Public Utility Commission of Sri Lanka
Ministry of Economic Reforms
10th Floor, West Tower
World Trade Centre
Colombo, Sri Lanka

Ms Manisha Kabra
Area Convenor & Research Associate
The Energy and Resources Institute
Darbari Seth Block, Habitat Place
Lodi Road, New Delhi - 110 003
Tel: 24682100/24682111
Fax: 24682144/24682145
E-mail: manishak@teri.res.in

Mr Ashok Kumar Khurana
Power & Energy Adviser
DFID
B-28, Tara Crescent
Qutub Institutional Area
New Delhi - 110 016

Mr Damitha Kumarasingha
Public Interest Programme Unit
Ministry of Economic Reforms
10th Floor, West Tower
World Trade Centre
Colombo, Sri Lanka

Mr T V Sunil Kumar
Price Waterhouse Coopers

Mr R C Mehta
Dy. General Manager (RCM)
BSES Rajdhani Power Ltd.
BSES Bhawan
Nehru Place
New Delhi - 110019
Tel: 51699888
Fax: 51699811

Mr K R Meena
Additional Secretary, Power
Government of NCT of Delhi
Department of Power
Delhi Secretariat: 8th Level, B-Wing
I P Estate, New Delhi

Shri P K Mehrotra
Chairman
Madhya Pradesh Electricity Regulatory Commission
Urja Bhawan, Shivaji Nagar
Bhopal - 462016
Tel: 0755-2762961
Fax: 0755-2766851

Ms Neha Misra
Research Associate
The Energy and Resources Institute
Darbari Seth Block
Habitat Place
Lodi Road, New Delhi - 110 003
Tel: 24682100/24682111
Fax: 24682144/24682145

Shri R Natarajan
Member (Economics)
Madhya Pradesh Electricity Regulatory Commission
Urja Bhawan, Shivaji Nagar
Bhopal - 462016
Tel: 0755 766851
Fax: 0755 766851

Prof S L Rao
Distinguished Fellow
The Energy and Resources Institute
Darbari Seth Block, Habitat Place
Lodi Road, New Delhi - 110 003

Mr Y V V J Rajasekhar
Deputy Secretary, Power
Government of NCT of Delhi
Department of Power
Delhi Secretariat: 8th Level, B-Wing
I P Estate, New Delhi

Shri D Roybardhan
Member (Engineering)
Madhya Pradesh Electricity Regulatory Commission
Urja Bhawan, Shivaji Nagar
Bhopal - 462016
Tel: 0755 766851
Fax: 0755 766851

Mr R K Sharma
Member
Gujarat Electricity Regulatory Commission
1st Floor, Neptune Tower
Opp. Nehru Bridge
Ashram Road, Ahmedabad - 380009

Mr Vivek Sharma
Area Convenor & Research Associate
The Energy and Resources Institute
Darbari Seth Block, Habitat Place
Lodi Road, New Delhi - 110 003
Tel: 24682100/24682111
Fax: 24682144/24682145
E-mail: vsharma@teri.res.in

Mr Sanjay Singh
Specialist
Uttar Pradesh Electricity Regulatory Commission
Kisan Mandi Bhawan
2nd Floor, Gomti Nagar
Lucknow – 226 010
Tel: 0522 720427
Fax: 0522 720423

Mr Jigme Tobgyel
Manager, Planning & IT
Bhutan Power Corporation
Human Resource & Administration Dept.
PO Box 580, Thimphu
Bhutan
Tel: 975-2-325095
Fax: 975-2-322279

Mr Sonam Tobjay
Senior Manager
Bhutan Power Corporation
Human Resource & Administration Dept.
PO Box 580, Thimphu
Bhutan
Tel: 975-2-325095
Fax: 975-2-322279

Mr Karma Yonten
Bhutan Electricity Authority
Bhutan

Mr Siddique Zobair
Senior Asst. Secretary
Govt. of People's Republic of Bangladesh
Ministry of Power, Energy & Mineral Resources Division
Bangladesh Secretariat
Dhaka

Contact

Manisha Kabra,
TERI, Darbari Seth Block,
India Habitat Centre, New Delhi
Tel: 4682100/11 – Extn. 2239;
E-mail: manishak@teri.res.in