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Cost Recovery and Financial Viability of the Power Sector in Developing Countries: Insights from 15 Case Studies

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dc.contributor.authorHuenteler, Joern
dc.contributor.authorHankinson, Denzel
dc.contributor.authorRosenthal, Nicole
dc.contributor.authorBalabanyan, Ani
dc.contributor.authorKochnakyan, Arthur
dc.contributor.authorNguyen, Tu Chi
dc.contributor.authorRana, Anshul
dc.contributor.authorFoster, Vivien
dc.date.accessioned2020-02-06T16:39:51Z
dc.date.available2020-02-06T16:39:51Z
dc.date.issued2020-01
dc.description.abstractThis paper analyzes power utilities in 15 jurisdictions to understand the determinants of success for reforms aimed at improving financial viability and cost recovery in the power sector and the impacts of these reforms on metrics of sector performance. The analysis finds that electricity tariffs are rarely high enough to cover the full costs of service delivery, even where the cost of service is low, and that few countries adequately manage volatile costs and maintain cost recovery levels over time. Almost everywhere, power utilities often impose a substantial fiscal burden and contingent liabilities on government budgets. Over the past 30 years, cost recovery levels have increased on average, but progress has been uneven, with over half of the case study jurisdictions experiencing a decline compared with the pre-reform period. The record of reforms of price formation, especially tariff setting through regulatory agencies, is mixed. On average, countries that have made more progress on utility governance and decision making perform better on cost recovery. The paper concludes with proposed modifications to the conceptual framework underpinning the economic analysis of power sector reforms as well as immediate, practical implications for understanding cost recovery as part of the overall power sector reform agenda.en
dc.identifierhttp://documents.worldbank.org/curated/en/970281580414567801/Cost-Recovery-and-Financial-Viability-of-the-Power-Sector-in-Developing-Countries-Insights-from-15-Case-Studies
dc.identifier.doi10.1596/1813-9450-9136
dc.identifier.urihttps://hdl.handle.net/10986/33292
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9136
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectPOWER SECTOR
dc.subjectCOST OF SERVICE DELIVERY
dc.subjectACCESS TO ELECTRICITY
dc.subjectELECTRICITY PRICING
dc.subjectELECTRICITY TARIFF
dc.subjectCOST RECOVERY
dc.subjectELECTRICITY SUBSIDY
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectELECTRIC UTILITIES
dc.titleCost Recovery and Financial Viability of the Power Sector in Developing Countriesen
dc.title.subtitleInsights from 15 Case Studiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCost Recovery and Financial Viability of the Power Sector in Developing Countries: Insights from 15 Case Studies
okr.date.disclosure2020-01-30
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/970281580414567801/Cost-Recovery-and-Financial-Viability-of-the-Power-Sector-in-Developing-Countries-Insights-from-15-Case-Studies
okr.guid970281580414567801
okr.identifier.doi10.1596/1813-9450-9136
okr.identifier.doihttps://doi.org/10.1596/1813-9450-9136
okr.identifier.externaldocumentum090224b08757a91a_2_0
okr.identifier.internaldocumentum31743943
okr.identifier.reportWPS9136
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/970281580414567801/pdf/Cost-Recovery-and-Financial-Viability-of-the-Power-Sector-in-Developing-Countries-Insights-from-15-Case-Studies.pdfen
okr.statistics.combined5811
okr.statistics.dr970281580414567801
okr.statistics.drstats4274
okr.topicEnergy::Electric Power
okr.topicEnergy::Energy Policies & Economics
okr.topicEnergy::Energy Sector Regulation
okr.topicEnergy::Energy and Poverty Alleviation
okr.topicPublic Sector Development::State Owned Enterprise Reform
okr.unitEnergy and Extractives Global Practice
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relation.isAuthorOfPublication059954cc-a249-5318-9829-61a08ded2637
relation.isAuthorOfPublication.latestForDiscovery023fa417-a081-5a7d-b40a-7c27882753d8
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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