Understanding Political Economy Analysis of Electricity Sector Reforms In Uttar Pradesh
Shruti Sharma (Professor from E Johns Hopkins School of Advanced International Studies), Tom Morenhout ( Senior Associate from E Johns Hopkins School of Advanced International Studies), Vibhuti Garg (Associate and Senior Energy Specialist from IISD) and Johannes Urpelainen (Professor from E Johns Hopkins School of Advanced International Studies)
This study investigates both the tariff reform and the UDAY scheme. Among households, surveys were conducted with 1,917 households, split equally between urban and rural areas. Among agricultural landholders, surveys were conducted with 413 farmers, 284 of whom use diesel pumps for irrigation and 129 of whom use electric pumps; interviews were conducted with 67 of the latter.
This project benefited from the expertise of the Center on Global Energy Policy (CGEP) and the Initiative for Sustainable Energy Policy (ISEP). The study suggests that some form of communication strategy can help create the political space that enables change. The government should consider a long-term strategy focused on awareness-raising and short-term strategies in support of specific reform initiatives. Awareness-raising is required because most consumers expect price rises but very few understand the scale of existing subsidies. This may make them feel more entitled to low prices, and it will prevent them from understanding the rationale for reform and the scale of price increases that may be sought over the medium to long term. Specific change strategies are required because many consumers clearly oppose price adjustments. Careful messaging can help convey how price adjustments will ultimately benefit consumers and not simply recover costs for discoms.
Location: Uttar Pradesh
