IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/9044.html
   My bibliography  Save this paper

Rwanda: Electricity Tariff Reform

Author

Listed:
  • Angel-Urdinola, Diego
  • Cosgrove-Davies, Malcolm
  • Wodon, Quentin

Abstract

Rwanda is facing a severe electricity crisis. Higher demand and production cost as well as a reduction in revenues in real terms have led to large operating losses for the electricity operator Electrogaz. In order to deal with this crisis, a doubling of electricity tariffs was recently approved, from a flat rate of RWF 42/kwh to a flat rate of RWF82/kwh. This flat rate may not be appropriate to protect some of the poorer residential customers of Electrogaz from the necessary increase in the average level of electricity tariffs. For this reason, Electrogaz has recently proposed to implement an Inverted U Block Tariff Structure. The objective of this paper is to provide a preliminary assessment of the distributive properties of the new tariff proposal, as well as simulations for the properties of alternative tariff designs using recent household survey data. The results show how simple techniques can be implemented fairly rapidly in order to assess the benefit incidence and poverty impact of policy proposals.

Suggested Citation

  • Angel-Urdinola, Diego & Cosgrove-Davies, Malcolm & Wodon, Quentin, 2006. "Rwanda: Electricity Tariff Reform," MPRA Paper 9044, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:9044
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/9044/1/MPRA_paper_9044.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:ebl:ecbull:v:9:y:2007:i:4:p:1-7 is not listed on IDEAS
    2. Diego Angel-Urdinola & Quentin Wodon, 2007. "Do Utility Subsidies Reach the Poor? Framework and Evidence for Cape Verde, Sao Tome, and Rwanda," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Banerjee, Sudeshna & Wodon, Quentin & Diallo, Amadou & Pushak, Taras & Uddin, Elal & Tsimpo, Clarence & Foster, Vivien, 2008. "Access, affordability, and alternatives: Modern infrastructure services in Africa," MPRA Paper 27740, University Library of Munich, Germany.
    2. Wodon, Quentin & Banerjee, Sudeshna & Diallo, Amadou Bassirou & Foster, Vivien, 2009. "Is low coverage of modern infrastructure services in African cities due to lack of demand or lack of supply ?," Policy Research Working Paper Series 4881, The World Bank.
    3. repec:ebl:ecbull:v:9:y:2007:i:4:p:1-7 is not listed on IDEAS
    4. Blanca Moreno-Dodson & Quentin Wodon, 2008. "Public Finance for Poverty Reduction : Concepts and Case Studies from Africa and Latin America," World Bank Publications - Books, The World Bank Group, number 6881.
    5. Angel-Urdinola, Diego & Wodon, Quentin, 2008. "Assessing the Targeting Performance of Social Programs: Cape Verde," MPRA Paper 11072, University Library of Munich, Germany.
    6. Lin, Boqiang & Jiang, Zhujun, 2012. "Designation and influence of household increasing block electricity tariffs in China," Energy Policy, Elsevier, vol. 42(C), pages 164-173.
    7. Elena Bardasi & Quentin Wodon, 2008. "Who pays the most for water? Alternative providers and service costs in Niger," Economics Bulletin, AccessEcon, vol. 9(20), pages 1-10.
    8. Diego Angel-Urdinola & Quentin Wodon, 2007. "Do Utility Subsidies Reach the Poor? Framework and Evidence for Cape Verde, Sao Tome, and Rwanda," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    9. repec:ebl:ecbull:v:9:y:2008:i:20:p:1-10 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gisella ARAGÓN & José Luis BONIFAZ, 2013. "The water and sanitation service provision in Peru," CIRIEC Working Papers 1306, CIRIEC - Université de Liège.
    2. Wodon, Quentin & Banerjee, Sudeshna & Diallo, Amadou Bassirou & Foster, Vivien, 2009. "Is low coverage of modern infrastructure services in African cities due to lack of demand or lack of supply ?," Policy Research Working Paper Series 4881, The World Bank.
    3. Blanca Moreno-Dodson & Quentin Wodon, 2008. "Public Finance for Poverty Reduction : Concepts and Case Studies from Africa and Latin America," World Bank Publications - Books, The World Bank Group, number 6881.
    4. Whittington, Dale & Nauges, Céline & Fuente, David & Wu, Xun, 2015. "A diagnostic tool for estimating the incidence of subsidies delivered by water utilities in low- and medium-income countries, with illustrative simulations," Utilities Policy, Elsevier, vol. 34(C), pages 70-81.
    5. Wang, Zhaohua & Sun, Yefei & Wang, Bo, 2020. "Policy cognition is more effective than step tariff in promoting electricity saving behaviour of residents," Energy Policy, Elsevier, vol. 139(C).
    6. Angel-Urdinola, Diego & Wodon, Quentin, 2008. "Assessing the Targeting Performance of Social Programs: Cape Verde," MPRA Paper 11072, University Library of Munich, Germany.
    7. repec:ebl:ecbull:v:9:y:2008:i:20:p:1-10 is not listed on IDEAS
    8. Quentin Wodon, 2012. "Improving the Targeting of Social Programs in Ghana," World Bank Publications - Books, The World Bank Group, number 13081.
    9. Herbert, Caren & Phimister, Euan, 2019. "Private sector-owned mini-grids and rural electrification: A case study of wind-power in Kenya's tea industry," Energy Policy, Elsevier, vol. 132(C), pages 1288-1297.
    10. Tsimpo, Clarence & Wodon, Quentin, 2016. "Residential Electricity in Uganda," MPRA Paper 114702, University Library of Munich, Germany.
    11. Barde, Julia Alexa & Lehmann, Paul, 2013. "Distributional effects of water tariff reforms: An empirical study for Lima, Peru," UFZ Discussion Papers 14/2013, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    12. Elena Bardasi & Quentin Wodon, 2008. "Who pays the most for water? Alternative providers and service costs in Niger," Economics Bulletin, AccessEcon, vol. 9(20), pages 1-10.
    13. Sadeghi, Mehdi & Ameli, Ahmad, 2012. "An AHP decision making model for optimal allocation of energy subsidy among socio-economic subsectors in Iran," Energy Policy, Elsevier, vol. 45(C), pages 24-32.
    14. repec:wbk:wbpubs:13082 is not listed on IDEAS
    15. Acey, Charisma & Kisiangani, Joyce & Ronoh, Patrick & Delaire, Caroline & Makena, Evelyn & Norman, Guy & Levine, David & Khush, Ranjiv & Peletz, Rachel, 2019. "Cross-subsidies for improved sanitation in low income settlements: Assessing the willingness to pay of water utility customers in Kenyan cities," World Development, Elsevier, vol. 115(C), pages 160-177.
    16. Lin, Boqiang & Chen, Xing, 2018. "Is the implementation of the Increasing Block Electricity Prices policy really effective?--- Evidence based on the analysis of synthetic control method," Energy, Elsevier, vol. 163(C), pages 734-750.
    17. Hung, Ming-Feng & Chie, Bin-Tzong, 2017. "The long-run performance of increasing-block pricing in Taiwan's residential electricity sector," Energy Policy, Elsevier, vol. 109(C), pages 782-793.
    18. Fernando Navajas Hancevic y & Pedro Hancevic, 2008. "Adaptación Tarifaria y Tarifa Social: Simulaciones para Gas Natural y Electricidad en el AMBA," Working Papers 96, FIEL.
    19. Mariana Marchionni & Walter Sosa-Escudero & Javier Alejo, 2008. "Efectos Distributivos de Esquemas Alternativos de Tarifas Sociales: Una Exploración Cuantitativa," CEDLAS, Working Papers 0069, CEDLAS, Universidad Nacional de La Plata.
    20. Komives, Kristin & Halpern, Jonathan & Foster, Vivien & Wodon, Quentin & Abdullah, Roohi, 2006. "The distributional incidence of residential water and electricity subsidies," Policy Research Working Paper Series 3878, The World Bank.
    21. Vagliasindi, Maria, 2012. "Implementing energy subsidy reforms : an overview of the key issues," Policy Research Working Paper Series 6122, The World Bank.
    22. Abramovsky,Laura Fernanda & Andres,Luis Alberto & Joseph,George & Rud,Juan Pablo & Sember,German Eduardo & Thibert,Michael David, 2020. "Study of the Distributional Performance of Piped Water Consumption Subsidies in 10 Developing Countries," Policy Research Working Paper Series 9245, The World Bank.

    More about this item

    Keywords

    Electricity tariff; Poverty; Impact Analysis;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:9044. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.