Accountability of multi-tiered delivery model for electricity
Over the years, government has successfully moved the electricity delivery into a multi tiered delivery environment, which is generation, transmission and distribution. BPDB, IPP and RPC are positioned in generation layer, PGCB at transmission layer and BPDB, DESA, REB are at distribution layer. DESCO and PBSs are positioned at a subsidiary layer of DESA and REB. Efficiency gain in customer service and billing occurred by DESA, DESCO, REB and PBSs. But public sector monopoly or duopoly (if we consider DESCO is competing with DESA) situation and an uncommitted delivery environment have stalled the economic activities. The probable answer to this monopoly/duopoly environment is, the introduction of more private competitors at distribution layer. This introduction is possible through strong electricity policy, harmonisation of technical standards and efficient management of delivery environment through internal and external Service Level Agreements (SLA) at inter-dependable tiers currently practiced in developed world. This inter-dependable shared delivery model and its accountability process will eventually move businesses in Bangladesh to an efficient service delivery paradigm.
Interestingly, all the private sector growth we have observed so far did not require a sharing of public infrastructure with the existing public sector on that particular service industry in delivering similar services. Current DESA and DESCO delivery model is non-functioning, due to uncommitted service level guarantee. To come out of this stagnant electricity crisis, probably one of the efficient ways forward is to split and distribute the existing electricity distribution network to more private sectors. These organisations will lease the existing infrastructure, purchase the electricity at a wholesale price from the generation layer (BPDB or IPP) and manage the distribution at access and service layer through effective competitive environment. Supply reliability to the public and businesses has to be managed through highly accountable SLAs. Effective management of SLAs is possible through ombudsman and higher financial penalties. Authorities can sort out the responsibilities of periodic infrastructure upgrade policy, which can either remain with the existing authorities maintaining it by collecting levies from the lessee, or it can be the responsibility of the lessee with a commitment to periodic improvement schedule to regulatory authorities. But most importantly, to ensure the production and supply of electricity, SLA between the generation, transmission and distribution layer has to be in place and that is the only way to make every layer accountable in this multi-tiered delivery environment. In order to ensure their delivery commitment, competitors at distribution layer should be allowed to source their supply from any sources they want, like from BPDB, IPPs or RPC whoever. Currently government is struggling to encourage investment in IPP businesses, but higher accountability will generate enough demand, which will lead to a profitable IPP investment. These new IPPs will introduce alternate power sources like coal, gas, air, solar or oil powered generators (already happening). Distribution layer should also be allowed to purchase electricity from neighbouring countries to fulfil their commitments.
For all latest news, follow The Daily Star's Google News channel. One of the major setbacks of using this shared delivery model in high risk industries is ensuring safety standards, which can easily be managed by regulating the certification and audit processes currently used in other high risk industries like, marine, airlines, etc.
Apart from monopoly power, government is also facing tremendous pressure from the labour unions, which is mainly dictated by labour leaders. These leaders are successfully creating enough unsecured employment panic to generate resistance. Government can overcome those resistances by advertising the employment growth observed in industries due to private sector boost, which was impossible by any government alone within such short period of time.
No doubt, the time has come to re-evaluate the electricity supply environment and reengineer the whole delivery process. Surely government and relevant authorities are working on it, but they need to make urgent improvement in this environment to support the economic growth.