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The discussion is being led by Prof. Shamsul Alam of Tel Gas Committee: Nepal and Indonesia are in worse situation than Bangladesh. They were blaming Asian Development Bank for wrong decisions. If this sector is dominated by the private sector, then it is bound to be profit-driven rather than people-driven. No clear policies for profit vs people exist. One question that was raised was what if beneficiaries are affected at local utility level - such as complaints regarding lack of electricity, low voltage etc.. What would be the policy of remedy. There was no clear conclusion drawn as to how to redress these. The Utility Act is not adequate for this. Consumer rights regarding this issue are not well established. It was framed during British times and consumers were not given rights that has the potential of embarassing the government. Three players - govt, local private sector and foreign private sector. These three have to have level playing fields. That is what the laws have to address. First lets establish whether electricity is a need or luxury? It can be said without doubt that it is a need. How much is the real demand? During winter, the demand is less for obvious reasons. We have scarcity of about 3000 megawatt. The demand is 7000 megawatt. But the govermet is saying the demand is about 5300 megawatt. Production scenario: - In 1996-2001, 1000 MW was added - In 2001-2006, 500 MW was added - In 2006, 1000 MW deficiency - It was steady during caretaker govt Another important point is that there is about 2% system loss The 91-96 government policy did not incorporate fuel diversity plans. Then the 96-2001 continued the same trend. It was based on gas solely. Alternative fuels were not considered. The government does not still have integrated energy policy. It has always been adhoc. This sector is one which is very prone to corruption since huge amount of money can be made. This sector has been always dominated by a 'shadow government'. One scope for corruption is in the area of equipment procurement, which is a direct cause of system loss and our inability to produce as much electricity as we could have. The price of electricity being generated by private sector cannot be regulated by the Regulatory Commission, since the Commission does not have the authority. So, the more this sector is in the private sector, the more the profit-maximization will win. The World Bank is creating an Energy Strategy. They are propagating this phenomenon. The government is continuing to create gas-based plants but gas will run out, but the government is not looking into these options. If we want to create a 1000 MW, where will we get the fuel from? The issue is not equipment. Now we have come to a situation where the government does not have capacity in a systematic way. There is an explicit effort towards privatization. There is no level playing field. Look at the issue of capacity building. We have not developed human resources for this sector - strategically. We have allowed foreign companies to come in. We have deliberately allowed this situation to arise. Also, look at the issue of financing. We are waiting for private and international investment but for some reason, are not using our own government's finance for this sector. Then let's come to the issue of primary fuel. Coal is the fuel for poor people - if I can get my own coal out, I can decide what the price would be, I can have control over it. Q and A session: Q: What can citizens do? A: Make sure that the price does not increase above a certain amount. Q: Is solar power an option? A: The price is still high but it is coming down. It is still not affordable by the poor. There has been some development in this sector in areas where there is no grill power. But it is only for things such as light, fan etc. not for commercial purposes. Q: What about Teletalk approach? A: Teletalk has been able to drive down prices but there is no such strategy in this sector. Also same thing with the banking sector. But in the energy sector, the govt sector is being deliberately destroyed. Q: What is India's strategy? A: Since the government is bound to give electricity, then govt has kept ownership of this sector for the most part. The West Bengal govt in particular has the stance that this sector has to be kept under state control with collaboration with private sector when needed. While our stance is exactly the opposite - the sooner we can give control to the private sector, the better. Q: Which countries have this sector in the private sector? A: All developed countries but in developing countries, it will not work since the governments do not have enough regulatory control. Q: What kind of regulatory control can ensure fair involvement of private sector? A: Private ownership vs. private collaboration/ participation is an important distinction to make. Regulation has to be from the context of an owner. The government still has not been able to gain that authority - it has to come from within. Q: What should be the campaigns on the part of the citizens? A: 1) We will excavate our own coal and we will develop the capacity but it should be saved, we should import for now. 2) We will not export our gas from the Bay of Bengal as a policy; 3) For emergency situation handling, the 6 public companies and REB, can be mobilized. They have Tk. 1000 crore liquid money and can also take long-term loans from the goverenment.