Publication: Sharing Power : Lessons Learned from the Reform and Privatization of Moldova's Electricity Sector
Date
2004-09-19
ISSN
Published
2004-09-19
Author(s)
Junge, Nils
Pushak, Taras
Lampietti, Julian
Dudwick, Nora
Van den Berg, Katelijn
Abstract
This study answers two questions about
power sector reform in Moldova. First, did reform affect the
poor and the non-poor differently? Second, are household
consumption patterns different for private and public
distribution networks? The study concludes that reforms have
not disproportionately affected the poor. The gap in
electricity consumption between poor and non-poor is
closing, as a result of improvements in the supply of
electricity, particularly in rural areas, and the
significant growth in income over the past four years.
Moldova's residential electricity consumption remains
exceptionally low and is probably highly inelastic,
especially for the very poor. This implies that unless they
are accompanied by increases in income, future tariff
increases could create large potential consumer welfare
losses-as well as large revenue gains for the utility. It
also implies that there may be room for substantial welfare
gains by helping households better manage their electricity
expenditures. Measures to do so could include introducing
prepayment swipe cards for meters, in order to reduce both
the costs and anxiety associated with disconnections;
encouraging the poor to use more energy-efficient
refrigeration and lighting technologies, through vouchers or
other similar programs; and having the public sector defray
the cost of extending access to clean, inexpensive gas in
small towns where people rely on electricity for heating, if
it can be done in a way that limits the financial
liabilities for the government.
Link to Data Set
Citation
“Junge, Nils; Pushak, Taras; Lampietti, Julian; Dudwick, Nora; Van den Berg, Katelijn. 2004. Sharing Power : Lessons Learned from the Reform and Privatization of Moldova's Electricity Sector. © World Bank: Washington, DC. http://hdl.handle.net/10986/14489 License: CC BY 3.0 IGO.”