Consultancy Support to
the HERC
Consumer Aspects –
Preliminary Findings of the
Consumer Survey
MERCADOS
ENERGY MARKETS INTERNATIONAL
Finding new paths for the energy market
CUTS International
Presentation 0utline
● Update of the assignment
● Objectives (Consumer Aspects Components)
● Overall approach
● Key findings of concept paper
● Consumer survey
-Methodology
-Questionnaire and data collection
-Survey findings
● Recommendations
● Way forward
Current status of the assignment
Component
Activities Completed
Ongoing Activities
Component 1:
Tariff Aspects
● Concept papers – on Generation,
Transmission and Distribution MYT
and Benchmarking
● Public Hearing
● Notification of
Regulations
● Development of MYT Regulations –
G, T, D
Component 2:
Intra-state ABT
and Market
Design
● Concept Paper on Market Design
and Intra-state ABT
● Draft Regulations on
Intra-state ABT under
preparation
● Draft Regulations on
Open Access also under
preparation
Component 3:
Consumer
Aspects
● Concept Paper on Consumer
Aspects
● Survey Methodology and
Questionnaire
● Execution of Survey
● Development of detailed
report on survey findings
● Development of road
map for Social
Accountability and
Consumer Involvement
Objectives
● Assess the scope and role of HERC in promoting consumer
participation in the regulatory decision making process
● Review the state of consumer satisfaction in Haryana
● Assess the level
structured survey
of
consumer
awareness
through
a
● Identify key barriers for effective consumer participation in
the State
● Recommend measures to
participation in the sector
promote
adequate
public
Overall Approach
Review of literature, statutes, policy, regulations
Comparison with best practices at national/international level
Identification of gaps & scope for improvement (Concept Paper)
Consumer perceptions: satisfaction and awareness (Survey)
Summary and conclusions
Development of roadmap for social accountability and consumer
involvement
Concept paper: key findings
● Haryana: pioneer state to initiate reforms at state level
● Increased scope for consumer participation
 Key regulations notified to empower consumers (CBR,
SOPs, Supply code, CRM etc.)
● Constitution
of
Complaint
Ombudsman- a step forward
 HERC has processed
consumers to participate
all
Redressal
Forums
orders/regulations
and
inviting
Concept paper: key findings (contd..)
● Weak participation in public hearings and inadequate
geographical coverage
● Inadequate written comments on the draft proposals
 Lack of effective consumer representation in SAC
● Lack of independence of Complaint Redressal Mechanism
(controlled by Discoms)
 No mechanism for effective monitoring of SOPs
 Lack of awareness among consumers on key issues
Consumer survey: methodology
Consumer survey: sampling methodology
● Sampling methodology (Multi-stages, PPS, random)
● Geographical representation

Each Discoms area was divided into 2 zones

2 districts chosen from each zone based on chosen criteria

Criteria: Composite ranking score of Literary rate & consumption (Click
for details)
● Most of the blocks covered in each sample districts
● Rural/urban ratio of the state was maintained - About 20% female
respondents were targeted
● Agricultural sector (both metered and un-metered consumers covered)
Consumer survey: questionnaires and data collection
● Base questionnaire covered
commercial consumers
domestic,
agricultural
and
● Separate questionnaire prepared for industrial consumers
● Questionnaires translated into local language (Hindi)
● Two days training
investigators
programme
conducted
for
field
April
2010,
17th March: Mercados EMI Office, Gurgaon,
 18th March: Field Training and Visit (Sonipat)

● Interview method used for investigation

Data collection though interviews:
Tabulation:13-22nd April 2010
18th
March-12th
Consumer survey: methodology
Sample size:
●
Domestic, Agricultural & Commercial ~1100 (data collected 1134)
●
Industry 200 (data collected 227)
Number of respondents
Percentage shares
Consumer
Category
State
UHBVN
DHBVN
State
UHBVN
DHBVN
Domestic
894
449
445
79%
79%
79%
Agricultural
131
72
59
12%
13%
10%
Commercial
109
49
60
10%
9%
11%
1134
570
564
100%
100%
100%
Total
Key survey findings: Domestic, Agricultural and
Commercial Consumers
Metering & Billing: Key Findings
● About 71% consumers are satisfied with metering
● Agricultural consumers are more satisfied than domestic
and commercial
● SOPs are not being implemented comprehensively
● Only a few consumers can understand Electricity bill
completely
● Overall Score for metering & billing is not satisfactory
Quality of Service: Key Findings
● Overall score for quality of service is low
● Load shedding and poor voltage quality are major concerns
● Agricultural and domestic consumers facing more power
cuts
● No prior information about load shedding to most of
consumers
● Wider variations in QOS across the districts
Awareness on Reforms & Regulation: Key Findings
● The awareness level on reforms process is very low
● A very few consumers are aware of websites of HERC/utility
● None of the consumers visited website of HERC/utility
● Most of the consumers are aware of energy efficient
equipment
● Overall score for information made available to consumers
is low
Complaint Redressal Mechanism: Key Findings
● The awareness about CRF and Ombudsman is too low
● Because of poor awareness level, very few consumers
approached to CRF
● Traditional method such as ‘personal visit’ still dominating
for registering complaint
● Consumers are not given a reference number for the
complaint registered with utility
Awareness on Tariff and Related Issues: Key Findings
● Majority of commercial consumers believe that tariff is
High
● About two-third agricultural consumers observed the tariff
Just Fair
● Majority of consumers not satisfied with the procedure for
new connection
● Overall non transparent process
connection is a major concern
in
releasing
new
Key Findings: Industrial Consumers
Industrial consumers: Key findings
● 86% respondents (out of 14) were satisfied with meter
testing procedure
 74% of the respondents believe that the QOS remained
unchanged over the last 3 years
 93% consumers
regularly
are
receiving
the
electricity
bills
● 95% out of total respondents were not aware of remote
metering technology
Industrial consumers: Key findings (contd...)
● 50% respondents experienced
equipment in last 3 years
damage/burnt
electrical
● 95% respondents were never given advance information of
power shut downs
 Awareness about HERC: (functions-14%, regulation 6%)
 Open access: 71% believe it can help in reducing cost
 None of the consumers applied for open access
Comparative Analysis of Consumer Perceptions
Indicator
Industry
Domestic etc.
Satisfied with metering
91%
72%
Satisfied with meter
testing
86%
29%
Load shedding (for 10 hrs or
more)
58%
68%
Aware of regulatory
mechanism
14% (functions
of HERC)
1.6% (aware about
HERC)
Received complaint no.
40%
13%
View on tariff: High
53%
55%
Awareness on EE
53% (Star rating
and labeling)
89% (CFL etc.)
Broad recommendations
● HERC to adopt a proactive role in promoting consumer
participation
● Concrete steps should be taken to generate adequate
awareness and involvement
Process of public hearing to be held in rural areas as well
 Involvement and nurturing active consumers groups/CSOs
 Translation of key documents in vernacular

● Complaint redressal mechanism to be made more effective
with generation of compliance reports from time to time
 Effective compliance of standards of performance through
appropriate measures (MYT Regulations)
 Wider dissemination of key regulatory information including
tariff filings
Next Steps
● Report on detailed consumer survey findings

Calculation of consumer satisfaction index and sub-indexes (such as those related
to metering, billing, etc)
● Preparation of Roadmap for Social Accountability


Outlining the actions, key responsibilities and timelines for achieving increased
consumer participation
Discussions with the Commission and select Consumer Associations

On the findings and the road map including aspects that require further
elaboration

Mechanisms to improve consumer involvement and satisfaction

Finalization of the above documents

Suggested action points for
dissemination of key findings

Development of framework for sustained action: replication of
consumer satisfaction survey
key
stakeholders
and
wider
Thank You
CUTS International
D-217, Bhaskar Marg, Bani Park Jaipur 302 016, India
Ph: 91.141.228 2821;
Fx: 91.141.228 2733/2485;
Em: rk2@cuts.org; c-cier@cuts.org
Web: www.cuts-ccier.org; www.cuts-international.org (Also
at Geneva, London, Hanoi, Nairobi and Lusaka)
Mercados – Energy Markets International
C/ Orense, 34, 8th floor 28020 – Madrid, Spain
Tel.: (+34) 91 579 52 42 Fax: (+34) 91 570 35 00
Web: www.mercadosemi.es
Email: info@mercadosemi.es
Mercados – Energy Markets India Private Limited
Gurgaon:
206, Tower B, Millennium Plaza, Sec 27, Gurgaon – 122002,
India
Tel.: (+91) 124 424 1750 Fax: (+91) 124 424 1751
Mumbai:
110 Master Mind I, Royal Palms,
Aarey Milk Colony, Goregaon (East)
Mumbai 400 065
Tele fax: (+91) 22 2879 3510
Web: www.mercadosemi.es /asia
Email: ade@mercadosemi.es
Supporting Data and Detailed Analysis
Metering & Billing
Key Finding 1: About 71 percent of consumers are satisfied
with metering
Totally Dissatisfied
Total
Commercial
Partially satisfied
12%
16%
19%
12%
33%
16%
Agricultural 2% 17%
Domestic
Adequately satisfied
16%
38%
38%
29%
Highly satisfied
28%
52%
33%
39%
Key Finding 2: For about 60 percent of the consumers, metering
complaints were addressed more than a week later (Out of 127
who registered a meter related complaint)
No action
was taken
One day
Between
one week
and one day
Between
one month
and a week
More than a
month
20%
5%
SOP Regulations
provide a
maximum time
frame of 7 days
17%
13%
46%
Key Finding 3: There is a need to produce bills in simple,
Local language
C
om
pl
et
e
ly
6.50%
R
ea
so
na
bl
y
32.90%
P
ar
ti
al
ly
41.70%
N
ot
at
al
l
18.90%
Key Finding 4: Overall ranking of the metering and billing
process is not very satisfactory
Low
Overall,
commercial
consumers have
more concerns
Total
Commercial
16%
60%
26%
Agricultural 11%
Domestic
Average
16%
58%
60%
60%
High
23%
17%
28%
23%
Key Finding 5: Urban consumers are less satisfied than the
rural consumers on metering and billing issues
Low
Total
16%
Rural 12%
Urban
24%
Average
60%
60%
60%
High
23%
27%
16%
Quality of Service
Key Finding 1: No prior information on power shutdowns
is supplied to most of the consumers
Yes
2%
No
98%
Need for dissemination of vital information to consumers (sms,
advertisement in papers, etc)
Key Finding 2: Overall score for QOS is low for majority
Low
Total
Overall,
agricultural
consumers
have more
concerns with
QOS
Commercial
Agricultural
Domestic
Average
67%
54%
78%
67%
High
32% 1%
46%
0%
22%0%
32% 1%
Key Finding 3: the majority of consumers do not observe any
improvement in QOS over last 3 years
Deteriorated
Marginal improvement
Total
Mewat
Gurgaon
Fatehabad
56%
Karnal
35%
52%
46%
44%
2%
1% 1%
26%
0%
6% 0%
39%
24% 1%0%
75%
66%
8%
45%
28%
55%
Hisar
Jhajjar
Unchanged
Improved significantly
20%
52%
13%
1%
1% 2%
Yamuna Nagar
52%
38%
3%
7%
Sonipat
52%
36%
10% 1%
Awareness about Reforms & Regulations
Aware of HERC
Aware of
Websites of
HERC/utilities
Key Finding 1: Awareness about HERC is very low
0.03%
1.60%
• Set up a Consumer Welfare Fund to support capacity
building/awareness activities
• Involve Panchayats to ensure effective participation by local
institutions
Key Finding 2: There is adequate awareness on EE
Aware (Out of total)
Started use (Out of aware candidates)
O
ve
ra
ll
95%
89%
98%
om
m
er
ci
a
l
99%
C
96%
D
om
es
ti
c
A
gr
ic
u
lt
ur
a
l
92%
94%
87%
Key Finding 3: Overall ranking about information available to
consumer is low
Average
23%
High
0%
Low
77%
Need for wider dissemination of useful information to
consumers
Complaint Redressal Mechanism
Key Finding 1: Most of the consumers make personal visits
for registering complaint
Commercial
17%
75%
Agricultural
73%
Domestic
72%
Overall
72%
Personal visit
Register available in village
Email
11%
12%
12%
7% 0%
16%
0%
14% 2%
14%
2%
Call to distribution circle
Toll Free No
Make the compliant redressal process more consumer friendly
Key Finding 2: Most of the consumers are not given a
reference no for the complaint registered
A
lw
ay
s
3%
M
os
tl
y
4%
88%
N
ev
er
O
cc
as
io
n
al
ly
6%
Need for a accountable complaint redressal mechanism
Key Finding 3: awareness about complaint redressal forum as
well as ombudsman is very low
Awareness
about
Ombudsman
Awareness
about CGRF
1.00%
1.60%
Wider dissemination of information about the CRM
Key Finding 4: About 2/3rd consumers do not observe any
improvement in Complaint Redressal Mechanism over last 3
years
Overall
Commercial
Agricultural
Domestic
Deteriorated
18%
23%
21%
18%
Unchanged
48%
26%
50%
22%
54%
17%
47%
28%
Marginal improvement
8%
5%
8%
8%
Improved significantly
Tariff and other Related Issues
Key Finding 1: Majority of the commercial and domestic
consumers believe that they are paying higher tariff
Too high
Commercial
Agricultural
Domestic
Slightly high
39%
29%
17% 14%
33%
Just fair
Low
30% 1%
66%
24%
3%
43%
0%
Key Finding 2: Majority of the consumer applying for new
connection are not satisfied with the procedure
Highly
satisfied
20%
Not at all
34%
Satisfied
26%
Partially
satisfied
20%
Key Finding 3: Lack of transparency in releasing new
connection is the major concern of consumers
54%
16%
To
ta
l
30%
Too high charges
40% 0%
om
m
er
ci
a
l
60%
43%
14%
A
g
ri
cu
lt
ur
a
l
C
43%
Non transparent
process
D
om
es
ti
c
24%
57%
18%
Un-friendly
behaviour
Zonal Distribution
DHBVN: Sampling Districts
UHBVN
Literacy
(%age)
Index
score
Zone
(Literacy)
Eastern
Zone
Western
Zone
Consumpti
on
(Lakh
kWh)
Index
score
(Consu
mption)
Compos
ite
Score
Rankin
g
(Ascen
ding)
Faridabad
70.79
9.35
20454
7.45
8.40
5
Palwal
70.79
9.35
2903
1.06
5.20
2
Gurgaon
63.61
8.40
27472
10.00
9.20
6
Mewat
63.61
8.40
729
0.27
4.33
1
Mahendergarch
70.43
9.30
4454
1.62
5.46
3
Rewari
75.75
10.00
6693
2.44
6.22
4
Sirsa
61.2
8.98
8401
7.71
8.34
2
Hisar
65.85
9.66
10900
10.00
9.83
4
Fatehabad
58.16
8.53
6895
6.33
7.43
1
Bhiwani
68.17
10.00
8405
7.71
8.86
3
UHBVN: Sampling Districts
UHBVN
Literacy
(%age)
Zone
Eastern Zone
Western
Zone
Index
score
(Literacy)
Consum
ption
(Lakh
kWh)
Index
score
Composi
te Score
Ranking
(Ascend
ing)
(Consump
tion)
Panchkula*
76.54
10.00
11391
8.37
9.19
3
Yamunanagar
72.20
9.43
10257
7.54
8.49
1
Ambala
76.20
9.96
11391
8.37
9.16
2
Karnal
68.20
8.91
13608
10.00
9.46
5
Panipat
69.75
9.11
12861
9.45
9.28
4
Kurukshetra
70.04
9.15
10066
9.68
9.41
5
Rohtak
74.56
10.00
4941
4.75
7.37
2
Sonepat
73.71
9.89
10404
10.00
9.94
6
Jhajjar
72.48
9.72
4632
4.45
7.09
1
Kaithal
59.5
7.98
9358
8.99
8.49
4
Jind
62.8
8.42
6783
6.52
7.47
3
Blocks Covered
●
●
●
●
●
●
●
●
Yamunanagar – Jagadri, Chhachhrauli, Radaur
Hisar – Hisar, Hansi, Adampur
Sonepat – Sonepat, Gannur, Gohana
Karnal – Karnal, Nilokhri, Asand
Jhajjar – Jhajjar, Salahwas, Beri
Gurgaon – Gurgaon, Sohna, Pataudi
Fathehabad – Fathehabad, Ratiya, Tohana
Mewat – Firozpur Jhirka, Nuh, Tauru