IDEAS home Printed from
   My bibliography  Save this book

Utility Pricing and the Poor : Lessons from Armenia


  • Julian A. Lampietti
  • Anthony A. Kolb
  • Sumila Gulyani
  • Vahram Avenesyan


Increasing cost recovery for utilities is a cornerstone of the Government of Armenia's economic reform program. This report assesses the 1999 electricity tariff increase and the potential for future improved water sector cost recovery, with particular attention to questions of service accessibility and affordability for the poor . The burden of energy expenditures is large for most households, particularly for the poor. Electricity makes up the bulk of these expenditures, and a further increase in tariffs, without increasing access to low cost substitutes, would lead to the greatest hardship for the urban poor. Future electricity tariff increases should be closely coordinated with improved price response prediction and credible action to mitigate the potential impact on the poor and the environment. The water utilities are caught in a low-level equilibrium trap, characterized by decreasing service quality and revenue. The water utilities must break out of this trap by generating more revenues through improved service delivery. A two-stage approach is recommended. In the first stage, revenues should be increased by enforcing payment from the households that currently have reliable service but are not paying their bills, in the second stage, after collection capacity is strengthened, the utility should start a program of tariff adjustments, based on improved service and meter-based billing.

Suggested Citation

  • Julian A. Lampietti & Anthony A. Kolb & Sumila Gulyani & Vahram Avenesyan, 2001. "Utility Pricing and the Poor : Lessons from Armenia," World Bank Publications, The World Bank, number 13913, March.
  • Handle: RePEc:wbk:wbpubs:13913

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Riverson, J. & Gaviria, J. & Thriscutt, S., 1991. "Rural roads in Sub-Saharan Africa: lessons from World Bank experience," Papers 141, World Bank - Technical Papers.
    2. Heggie, I.G. & Vickers, P., 1998. "Commercial Management and Financing of Roads," Papers 409, World Bank - Technical Papers.
    3. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Julian A. Lampietti & Anke S. Meyer, 2002. "Coping with the Cold : Heating Strategies for Eastern Europe and Central Asia's Urban Poor," World Bank Publications, The World Bank, number 15174.
    2. Julian Lampietti, 2004. "Power's Promise : Electricity Reforms in Eastern Europe and Central Asia," World Bank Publications, The World Bank, number 14936.
    3. Samuel Fankhauser & Yulia Rodionova & Elisabetta Falcetti, 2008. "Utility payments in Ukraine: affordability, subsidies and arrears," UCL SSEES Economics and Business working paper series 87, UCL School of Slavonic and East European Studies (SSEES).
    4. World Bank, 2002. "India : Power Sector Reform and the Poor," World Bank Other Operational Studies 15286, The World Bank.
    5. Ersado, Lire, 2012. "Poverty and distributional impact of gas price hike in Armenia," Policy Research Working Paper Series 6150, The World Bank.
    6. Iuliia Ogarenko & Klaus Hubacek, 2013. "Eliminating Indirect Energy Subsidies in Ukraine: Estimation of Environmental and Socioeconomic Effects Using Input–Output Modeling," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-27, December.


    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:wbk:wbpubs:13913. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Breineder). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.