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. 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.
    2. repec:ebl:ecbull:v:9:y:2007:i:4:p:1-7 is not listed on IDEAS
    3. Antonio Estache & V. Foster & Q. Wodon, 2002. "Accounting for Poverty in Infrastructure Reform: Learning from Latin America's Experience," ULB Institutional Repository 2013/44108, ULB -- Universite Libre de Bruxelles.
    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. Amadou Bassirou Diallo & Sudeshna Banerjee & Vivien Foster & Quentin Wodon, 2009. "Is Low Coverage of Modern Infrastructure Services in African Cities due to lack of Demand or lack of Supply ?," Post-Print hal-00405400, HAL.
    2. repec:ebl:ecbull:v:9:y:2007:i:4:p:1-7 is not listed on IDEAS
    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, December.
    4. Angel-Urdinola, Diego & Wodon, Quentin, 2008. "Assessing the Targeting Performance of Social Programs: Cape Verde," MPRA Paper 11072, University Library of Munich, Germany.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    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. 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.
    2. repec:ebl:ecbull:v:9:y:2008:i:20:p:1-10 is not listed on IDEAS
    3. Tsimpo, Clarence & Wodon, Quentin, 2016. "Residential Electricity in Uganda," MPRA Paper 114702, University Library of Munich, Germany.
    4. 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).
    5. 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.
    6. Antonio Estache & Marco Manacorda & Tommaso M. Valletti, 2002. "Telecommunications Reform, Access Regulation, and Internet Adoption in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 153-218, January.
    7. Gisella ARAGÓN & José Luis BONIFAZ, 2013. "The water and sanitation service provision in Peru," CIRIEC Working Papers 1306, CIRIEC - Université de Liège.
    8. Matthias Finger & Rolf W. Künneke (ed.), 2011. "International Handbook of Network Industries," Books, Edward Elgar Publishing, number 12961.
    9. repec:cuf:journl:y:2014:v:15:i:2:calderon:serven is not listed on IDEAS
    10. Jos van Bommel & Jose Penalva, 2012. "The Governance of Perpetual Financial Intermediaries," DEM Discussion Paper Series 12-10, Department of Economics at the University of Luxembourg.
    11. Paul Makdissi & Quentin Wodon, 2007. "Poverty‐Reducing and Welfare‐Improving Marginal Public Price and Price Cap Reforms," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(4), pages 683-698, August.
    12. Oulay Phadouangdeth & Sounthone Phommason & Phouphet Kyophilavong & Inpaeng Sayvaya, 2014. "Does the Accession of Road Reduce the Poverty? Evidence from Northern, Central, and Southern Parts of Lao PDR," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(9), pages 377-386, September.
    13. 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, December.
    14. 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.
    15. 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).
    16. Justin Yifu Lin & Yan Wang, 2016. "Special Section: China's Growing Trade and its Role to the World Economy," Pacific Economic Review, Wiley Blackwell, vol. 21(1), pages 102-117, February.
    17. David McKenzie & Dilip Mookherjee, 2003. "The Distributive Impact of Privatization in Latin America: Evidence from Four Countries," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 161-234, January.
    18. Penelope J. Brook & Timothy C. Irwin, 2003. "Infrastructure for Poor People : Public Policy for Private Provision," World Bank Publications - Books, The World Bank Group, number 15159, December.
    19. Angel-Urdinola, Diego & Wodon, Quentin, 2008. "Assessing the Targeting Performance of Social Programs: Cape Verde," MPRA Paper 11072, University Library of Munich, Germany.
    20. Cynthia Goytia & Ricardo Pasquini & Pablo Sanguinetti, 2011. "Public-Private Co-operation for Gas Provision in Poor Neighbourhoods of Buenos Aires: Impact on Housing Improvements and Health," WIDER Working Paper Series wp-2011-023, World Institute for Development Economic Research (UNU-WIDER).
    21. Marcela Meléndez & Andrés Gómez-Lobo Echeñique, 2007. "Social Policy, Regulation and Private Sector water supply: the case of Colombia," Working Papers wp252, University of Chile, Department of Economics.
    22. Calderon, Cesar & Serven, Luis, 2008. "Infrastructure and economic development in Sub-Saharan Africa," Policy Research Working Paper Series 4712, 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.