This lecture is part of the 2016 ProSPER.Net Young Researchers’ School on sustainable energy for transforming lives: availability, accessibility, affordability
2. Approach
Move away from getting
into sectoral issues
First Fix Inter Sectoral
Issues and Principles
Principles first, numbers
later
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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
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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. 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
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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. 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
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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
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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
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