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Energy Policy and
Governance - Principles
Presentation for TERI
UNIVERSITY 5th February
2016: 9:15 am
1
Approach
 Move away from getting
into sectoral issues
First Fix Inter Sectoral
Issues and Principles
Principles first, ...
Objectives
Evolve Principles which will
apply to all Energy Sectors
Deviations to be the
exception; where
unavoidable th...
Principles
Resource Assessment
Role of Private Sector
Single Regulator
Pricing – supply side and
demand side
Taxation...
RESOURCE ASSESSMENT
Recoverable Reserve estimation not
available in public domain
Quantum of Recoverable Coal
Reserves d...
ROLE OF PRIVATE SECTOR
The roles vary considerably across
energy sectors
Mode of selection also varies –
ideally all sec...
SINGLE REGULATOR
Ideally there should be one
regulator for all energy sectors –
many countries use this model
Till this ...
PRICING – SUPPLY SIDE AND
DEMAND SIDE
 Of all the issues this is the most difficult and also
important.
 Pricing Policy ...
TAXATION
 Uniform treatment for all in Direct
Taxation
 Accelerated Depreciation is not a good
incentive – however if gi...
SUBSIDIES
 Subsidies should be open and not hidden
in terms of tax concessions
 Subsidies should be linked to performanc...
Recent Developments
Fossil Fuel Price fall
Solar Energy price fall
Coal Import reduction
Coal opened for merchant sale...
Use of Principles
Administrative measures
Legal measures
Demand Side Management –
Consumer Education and
Support
12
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Energy policy and governance - principles, Rakesh Kacker, Director India Habitat Centre

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This lecture is part of the 2016 ProSPER.Net Young Researchers’ School on sustainable energy for transforming lives: availability, accessibility, affordability

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Energy policy and governance - principles, Rakesh Kacker, Director India Habitat Centre

  1. 1. Energy Policy and Governance - Principles Presentation for TERI UNIVERSITY 5th February 2016: 9:15 am 1
  2. 2. Approach  Move away from getting into sectoral issues First Fix Inter Sectoral Issues and Principles Principles first, numbers later 2
  3. 3. Objectives Evolve Principles which will apply to all Energy Sectors Deviations to be the exception; where unavoidable they will have to be specifically proposed, justified and approved 3
  4. 4. Principles Resource Assessment Role of Private Sector Single Regulator Pricing – supply side and demand side Taxation 4
  5. 5. RESOURCE ASSESSMENT Recoverable Reserve estimation not available in public domain Quantum of Recoverable Coal Reserves doubtful Need periodic correction for economic and environmental reasons Current reserve estimation not useful for planning or deciding linkages5
  6. 6. ROLE OF PRIVATE SECTOR The roles vary considerably across energy sectors Mode of selection also varies – ideally all sectors should use competitive bidding Terms of operation should also be similar Revenue share vs cost recovery is another common issue 6
  7. 7. SINGLE REGULATOR Ideally there should be one regulator for all energy sectors – many countries use this model Till this happens the role of the regulator should be uniform across sectors Power sector regulation is most advanced with coal the most behind Not rational to trust regulator in one sector but not in another7
  8. 8. PRICING – SUPPLY SIDE AND DEMAND SIDE  Of all the issues this is the most difficult and also important.  Pricing Policy has to take note of the fact that our import dependence is rising and with it our exposure to external price developments  Supply side – consumer price should be linked to import parity prices while production prices should be close to cost of production  Imperative that all suppliers of energy goods and services get fully compensated by prices/subsidies 8
  9. 9. TAXATION  Uniform treatment for all in Direct Taxation  Accelerated Depreciation is not a good incentive – however if given in one area it should be given to all  Indirect Taxation should be used to tax inefficient and large vehicles/farm equipment  Efficient appliances like low energy DC devices should have zero taxation 9
  10. 10. SUBSIDIES  Subsidies should be open and not hidden in terms of tax concessions  Subsidies should be linked to performance and not capital investment  On consumer side subsidies should be given as direct cash transfer and not bundled with goods – this never has the intended benefit 10
  11. 11. Recent Developments Fossil Fuel Price fall Solar Energy price fall Coal Import reduction Coal opened for merchant sale 11
  12. 12. Use of Principles Administrative measures Legal measures Demand Side Management – Consumer Education and Support 12

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