Utility Pricing and the Poor: Lessons from Armenia

by Lampietti, Julian A.

• ISBN13: 9780821349229
• ISBN10: 0821349228
• Format: Paperback
• Copyright: 2001-05-01
• Publisher: World Bank

Summary

'Utility Pricing and the Poor' evaluates the 1999 electricity tariff increase and the potential for improved water-sector cost recovery, with a particular focus on service accessibility and affordability for the poor. A two-stage approach is recommended. In the first stage, revenues should be increased by ensuring payment from households that have reliable service but are not paying their bills. After collection capacity is strengthened, the utility should implement a program of tariff adjustment, based on improved service and meter-based billing.

Table of Contents

Abstract	v
Acknowledgments	vi
Abbreviations	vii
Executive Summary	viii
The electricity tariff increase and energy policy	viii
Improving water service and water utility revenue	ix
Introduction	1	(1)
How is the economy today?	1	(1)
Why did the utilities collapse?	1	(1)
How have the utilities fared since the crisis?	2	(1)
How have the people fared?	2	(1)
The challenge ahead	3	(1)
Identifying the poor and their priorities	4	(7)
What is the preferred welfare measure?	4	(2)
How much money are people spending on utilities?	6	(2)
What are people's development priorities?	8	(1)
Do the poor have the same priorities as the non-poor?	9	(2)
Household energy consumption	11	(15)
What happened?	11	(1)
Household energy consumption patterns	11	(2)
How reliable is electricity service?	13	(1)
What are the payment and collection mechanisms?	14	(1)
How do people cope with rising energy prices?	14	(2)
How much was the price of electricity increased?	16	(1)
What was the overall impact the price increase?	17	(1)
Did consumption fall among the poor?	18	(1)
How did bill amounts and payments change?	19	(1)
How did the gap between bills and payments change?	20	(2)
What was the impact and effectiveness of cash transfers?	22	(1)
Were cash transfers well targeted?	23	(1)
Did cash transfers help soften the impact?	23	(1)
Conclusions and lessons	23	(3)
Household water consumption	26	(1)
What led to the current situation?	26	(1)
How satisfactory is the current level of service?	27	(1)
Who has access to running water at home?	27	(1)
Is access the same for all?	28	(1)
How is water quality perceived?	29	(1)
How are households coping with service problems?	29	(2)
How much water do people think they consume?	31	(1)
Who pays for water?	32	(1)
How much are people expected to pay	33	(1)
How much are people willing to pay?	33	(4)
Conclusions	37