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What was the process adopted to come to the current tariff? Is there willingness to pay? The tariff was decided by the village electrification committees and BASIX in consultation with the residents of Dharnai. To begin with, Greenpeace had met the four Village Electrification Committees (VECs) with a draft tariff structure. The VECs in turn took feedback from communities and tolas they represent on the tariff structure. Once a consensus was built on the tariff structure, there was a final meeting with the panchayat and the sarpanch. The tariff structure was finalised and signed by all four VECs, BASIX and panchayat. VECs and operator can revise the tariff based on the maintenance and operation cost after the same process of consultation with all villagers. As per Electricity Act, 2003 and Bihar Electricity Regulatory Commission norms, the tariffs can be decided after mutual agreement of villagers and operator. So every household will have to give their agreement on the tariff for it to be finalised. electricity from the micro-grid is more expensive than the electricity available from the grid. How do you intend to make the micro-grid sustainable? Yes, currently the electricity from the micro-grid is more expensive than the electricity provided by the centralised grid. However, the question here is of access to electricity or no electricity at all. Moreover, if the external costs of a centralised grid-based power system are added, it is far more unsustainable than a decentralised system. Hence, the crucial question that faces us is – how long can we continue to bear the burden of a flawed and intensive setup? It is only obvious to shift to a smarter and less complicated structure that truly delivers. The main source of income for villagers in Dharnai is agriculture. The per capita income of the village is very high, except for the 75 BPL [below the poverty line] households. As per our survey, the willingness to pay is very high in Dharnai. Also, a village that did not have electricity for 30 years will see the benefits of 24x7 electricity supply. How were the electrification committees formed? The micro-grid divides Dharnai in four clusters and each cluster (tola) Combining the four VECs, a cooperative has a mix of all castes and both below poverty line and above poverty society will be formed for Dharnai, which line families. For each tola, there is a Village Electrification Committee will have a chairman, deputy chairman, (VEC) which comprises 20 members – five working group members secretary and treasurer. This cooperative with the chairman, deputy chairman, and secretary. To ensure gender society will look at the overall development balance, each VEC working body has three female members. Each of the micro-grid regarding financial VEC is responsible for the maintenance and security of the microgrid infrastructure and the dispute between consumers in their tolas. security and maintenance. returns, tariffs and consumer disputes, In total, there will be four VECs in Dharnai to look after the overall running of the micro-grid. 28 MEDIA MANUAL | Tariff, Funding and Maintenance
Paying Rs 10 a day for mobile charging is different from paying a larger amount per month. How are you taking that into account? As mentioned earlier, Dharnai has been without electricity for 30 years. They have been dependent on expensive and inefficient fuels like kerosene and diesel. Some have even bought single solar panels to light a bulb or power a television. They can understand and have realised the benefits of round-theclock electricity. According to an estimate by the International Energy Agency, the 300 million people without access to electricity in India spend over $60 billion annually on inefficient and obsolete sources of energy like kerosene. This indicates there is willingness to pay even amongst the poor. xxviii What if people refuse to pay the tariffs or are unable to pay? At the time of applying for a connection, the consumer enters into an agreement with the VEC and the operator. The agreement lists out the terms and conditions, which include dues. In case of non-payment of dues, the VEC of that particular tola will take up the case and decide to disconnect the electricity connection and also reserve the security money deposit. The VEC and the operator will take the decision in case of non-payment of dues. disconnection in case of non-payment of In your inaugural press conference, you said it will be cheaper than other micro-grids. How? The tariffs under the micro-grid in Dharnai start from Rs 9.50 per unit and go up to Rs 13 per unit. Most micro-grids are currently charging above the current rate of unit we are charging. Moreover, we also supply more power than other micro-grids. Greenpeace solar- Other solar-based Husk-based micro- People People based micro-grid off-grid micro- grid model in engagement in engagement in tariff grid models in Bihar Greenpeace micro- other solar-based different parts of grid model microgrid model the country in different parts of the country Rs 9 per unit Rs 30 per unit Rs 20 per unit Tariff decided as No people minimum tariff for minimum tariff for tariff per the people participatory household household participatory method used in method other micro-grids Source: E[r]cluster report, MNRE data. MEDIA MANUAL | Tariff, Funding and Maintenance 29
Page 1 and 2: © VIVEK M/greenpeace Dharnai live
Page 3 and 4: Introduction Decentralised Renewabl
Page 5 and 6: What is Greenpeace doing in Bihar?
Page 7 and 8: A biomass gasifier generates electr
Page 9 and 10: With higher costs, why do you think
Page 11 and 12: Micro-grid in Dharnai MEDIA MANUAL
Page 13 and 14: A solar powered street lamp at the
Page 15 and 16: Even today, 82% of Bihar’s popula
Page 17 and 18: Why Dharnai in Bihar? After an exte
Page 19 and 20: What is BASIX and CEED and what are
Page 21 and 22: electrification committees that wil
Page 23 and 24: A solar powered street lamp seen at
Page 25 and 26: What is the process to get the bene
Page 27 and 28: Tariff, Funding and maintenance MED
Page 29: Note: 1. Each commercial establishm
Page 33 and 34: What will be the running costs? The
Page 35 and 36: How is it a business model? The mic
Page 37 and 38: What are your plans once the micro-
Page 39 and 40: potential for development and growt
Page 41 and 42: i ii iii iv http://www.greenpeace.o

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