Consumer Awareness in Electricity Reform in Nepal

Without Capacity Building on Electricity Reforms in Nepal (RESA Project) was launched in Kathmandu, Nepal on 22 April 2008. The major objective of the workshop was to share information regarding the RESA project. The workshop provided a forum for sharing ideas, views and experiences of various stakeholders in the electricity sector that can be useful to influence policy and decision making, and promoting consumers' participation in electricity sector development and reform.

CUTS Centre for Competition, Investment and Economic Regulation (CUTS C-CIER) along with its project partners in Bangladesh, India and Nepal is undertaking a project titled A pilot project on capacity building on electricity reforms in Bangladesh, India and Nepal. Given that effective stakeholder participation is a prerequisite for efficient regulatory outcomes; under-representation of consumers has started to reflect in the quality of regulatory decisions made in the electricity sector. This project aims to make the regulatory process more participatory; facilitate effective representation of consumers; and encourage regional cooperation.
  
The project was formally inaugurated at a local inception workshop titled Consumer Awareness in Electricity Reform in Nepal organized by South Asia Watch on Trade, Economics and Environment (SAWTEE). Participants at the workshop comprised of Nepal's prominent experts and policymakers in the electricity sector. Altogether 70 stakeholders from the government, private sector, media, political parties, and youth organizations actively participated in the workshop.

The programme was divided into an inaugural session and two technical sessions. Special guest Mr. Kush Kumar Joshi, President, Federation of Nepalese Chamber of Commerce and Industry (FNCCI), chaired the opening session. Mr. Navin Dahal, Executive Director, SAWTEE, in his welcome speech, highlighted the project's objectives and the rationale behind implementing it.  In the keynote address, Dr. Trilochan Uprety, Secretary, Ministry of Law and Justice, mentioned the need for Nepal to prepare an Integrated Energy Policy. He also urged the government to give due importance to the energy sector, especially electricity, in the process of restructuring the country. Mr. Udai Singh Mehta, CUTS C-CIER, shared India's experiences in electricity sector reforms and the growing importance given to consumer participation in his country by the central and state governments. Chief Guest Dr Posh Raj Pandey, Honorable Member, National Planning Commission, appreciated the initiative taken by SAWTEE to sensitize consumer groups regarding electricity sector development and reforms. He urged the government, private sector, civil society and the consumers to work collectively to meet the growing demand for energy. He also mentioned that the three year interim plan has made the provision of promoting investment and establishing an independent electricity commission. Mr. Kush Kumar Joshi, delivering chairperson's remarks, highlighted Nepal's regretful policy of boycotting consumers in policy making, planning and other reform activities, not only in electricity but in the overall energy sector. He requested consumers to contribute to resolving the problems prevalent in the sector and also asked the government to be more liberal in incorporating private players in developing the energy sector. He also highlighted the importance of alternative sources of energy for sustainable solutions which can complement the demand for electricity.

The first technical session focused on the various aspects of government policy regarding electricity sector. Mr. Rajendra Kishore Kshetri, Joint Secretary, Ministry of Water Resources, presented a paper on Regulatory Reforms in Electricity sector in Nepal: Issues and Challenges. The paper highlighted the need to initiate reforms that will ensure pro-consumer energy sector development as well as promote domestic and foreign investment. He also incorporated the salient features of the draft Electricity Law-2064. Mr. Kumar Pandey, Chief Technical Officer, Hydro Solutions Private Limited, commented on the paper and pointed out that the draft Electricity Law-2064 still lacks the provision for consumer participation in electricity sector development and reforms. He urged the government to treat electricity as a commercial commodity. The session was chaired by Mr. Santa Bahadur Pun, former Managing Director, Nepal Electricity Authority (NEA). In the chairperson's remarks, Mr. Pun opined for government policy that can better safeguard the consumers' interest. He also urged for the government policy initiatives to make the private sectors more responsible for developing cost effective hydroelectricity projects.

The second technical session focused on consumers' and stakeholders' perspectives regarding regulatory reforms in Nepal's electricity sector. Mr. Jyoti Baniya, General Secretary, Forum for Protection of Consumer Interest, presented a paper on the role of consumers in regulatory decision making process, highlighting the need for breaking the monopoly of NEA and ensuring wider participation of consumers in regulatory decision making processes. Mr. Ranjan Aryal, Joint Secretary, Law Reform Commission and Ms. Rupa Shrestha, Vice President, Consumers Forum Nepal, as discussants on the paper asked consumers to advocate their involvement in electricity sector development and reforms. Likewise, Mr. Bikash Thapa Chhetri, Columnist, Kantipur National Daily, presented a paper highlighting the role of the media in sensitizing and educating consumers. As a discussant, Gokarna Awasthi, Executive Member, Society of Economic Journalists of Nepal (SEJON), requested stakeholders in the electricity sector to provide correct information to the media. The session was chaired by Dr. Ajaya Dixit, a renowned water expert in Nepal. In his remarks, he was of the opinion that NEA's monopoly should be curtailed by unbundling it and forming an effective and independent regulatory mechanism that recognizes the role of consumers. He also called on consumer interest and activist groups/forums to work for consumer awareness and education.

Participants raised various thematic questions which were answered by the paper presenters, discussants and the chairpersons in both sessions.

Finally, Dr. Dhrubesh C. Regmi, Programme Director, SAWTEE, concluded the programme by highlighting the project's implementation modality. The workshop was followed by a close door meeting with the project partners whereby they were briefed about their roles and responsibilities as project implementation partners.