Access to Energy for the Base of the - Ashoka

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In 2005, you managed to get the utility to connect slums
through users cooperative. What happened then?
A. Bharti: We achieved to get a local connection for
Haiderpur. But the utility had finally been unwilling to work
with a cooperative and appointed a contractor.
How do you explain that?
� Financials:
Ashok Bharti, Founder
A Bharti: Large corporations are reluctant to change their
mindset and prefer keeping working as they are used to.
Project ability to solve the problem
� Problem and magnitude: 200k HH get illegal, poor
access to electricity in Delhi
�� Ability to serve the poorest:
� A large part of Haiderpur population belongs to
BOP500
� The connection is ~25% cheaper and more reliable
than when it was provided by the local mafia
� Needs addressed: All electricity needs
� Sustainability:
� Using a contractor rather than the cooperative has
raised several issues:
- Unreliability of successive contractors
- Doubts of the population on price scheme fairness
- Poor relationships between contractor and
community affect users behaviors (e.g., material
degradation)
� Impact:
� No formal impact measurement
� Reduction of tensions within neighborhood (mafia
influence and troubles due to electricity shortages
decreased)
Project economic viability ★★★
Project scalability
� Cooperative running costs would have been
covered by a very limited charge:
- Cost would have been ~$1,000 per month (4 staff
+ 1 office)
- Monthly charge of $0.2 per family for Haiderpur
5,000 HH
� Current contractor mark up is unknown
Sources: Hystra analysis; Interview and meetings with Ashok Bharti (Founder)
★★★
� Status: initial plan was to set up cooperatives in 3
slums but difficulties in Haiderpur discouraged scale-up
� Regulation:
✩✩✩
� A. Bharti believes that a law is required to
implement his model, forcing utilities to serve
slums
� However in other countries such a law has not
been necessary