The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts
The electricity sector in Bangladesh has been facing unprecedented challenges, with severe capacity constraints and sector subsidies that quadrupled from 0.2 percent to 0.8 percent of gross domestic product (GDP) between 2010 and 2012, driving the...
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| Format: | Policy Note |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17647682/transition-underpricing-residential-electricity-bangladesh-fiscal-distributional-impacts http://hdl.handle.net/10986/18362 |
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okr-10986-18362 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO ELECTRICITY AGRICULTURE APPROACH BALANCE COAL CONNECTED HOUSEHOLDS CONSUMER PRICE INDEX CONSUMERS CONSUMPTION INCREASES CONSUMPTION LEVELS COST OF ELECTRICITY COSTS OF ELECTRICITY CROSS SUBSIDIES CROSS-SUBSIDIZATION CRUDE OIL CRUDE OIL PRICE DECISION MAKING DEMAND FOR ELECTRICITY DIESEL DISTRIBUTION COMPANIES DISTRIBUTION OF ELECTRICITY EFFECTIVE SUBSIDIES ELECTRIC POWER ELECTRIC POWER CONSUMPTION ELECTRIC SUPPLY ELECTRICITY ELECTRICITY ACCESS ELECTRICITY BILL ELECTRICITY BILLS ELECTRICITY CONNECTIONS ELECTRICITY CONSUMPTION ELECTRICITY COSTS ELECTRICITY DEMAND ELECTRICITY GENERATION ELECTRICITY POLICY ELECTRICITY PRICING ELECTRICITY SECTOR ELECTRICITY SERVICE ELECTRICITY SUBSIDIES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY UTILITY ENERGY CONSUMPTION ENERGY MARKETS ENERGY POLICIES ENERGY PRICES ENERGY STATISTICS EXPORTS FORECASTS FUEL FUEL SOURCES GAS GAS PRICES GDP GENERATION GENERATION CAPACITY GENERATION COSTS GROSS DOMESTIC PRODUCT HOUSEHOLD ANALYSIS HOUSEHOLD CONSUMPTION INEFFICIENCY INFLATION INTERNATIONAL ENERGY AGENCY KILOWATT HOUR LIFELINE TARIFFS LNG LOW LEVELS OF ACCESS LOW LEVELS OF CONSUMPTION LOW TARIFFS MINERAL RESOURCES MONTHLY CONSUMPTION NATURAL GAS NATURAL GAS PRICE NEW POWER PLANTS OIL PARTIAL EQUILIBRIUM ANALYSIS PEAK DEMAND PETROLEUM PETROLEUM PRODUCTS PETROLEUM SECTOR POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL ECONOMY OF TARIFF POWER POWER CONSUMPTION POWER DISTRIBUTION POWER GENERATION POWER GRID POWER PLANTS POWER PRODUCER POWER SECTOR POWER SECTOR REFORMS POWER SHORTAGES PRIMARY FUEL PRIVATE SECTOR QUANTITY OF ELECTRICITY REPUBLIC RURAL CONSUMERS RURAL ELECTRICITY RURAL ELECTRIFICATION RURAL ELECTRIFICATION PROGRAM RURAL HOUSEHOLDS SOURCE OF ENERGY SUBSIDIZATION SUPPLY COSTS TARIFF LEVELS TARIFF STRUCTURE TARIFF STRUCTURES UTILITIES UTILITY COMPANY |
| spellingShingle |
ACCESS TO ELECTRICITY AGRICULTURE APPROACH BALANCE COAL CONNECTED HOUSEHOLDS CONSUMER PRICE INDEX CONSUMERS CONSUMPTION INCREASES CONSUMPTION LEVELS COST OF ELECTRICITY COSTS OF ELECTRICITY CROSS SUBSIDIES CROSS-SUBSIDIZATION CRUDE OIL CRUDE OIL PRICE DECISION MAKING DEMAND FOR ELECTRICITY DIESEL DISTRIBUTION COMPANIES DISTRIBUTION OF ELECTRICITY EFFECTIVE SUBSIDIES ELECTRIC POWER ELECTRIC POWER CONSUMPTION ELECTRIC SUPPLY ELECTRICITY ELECTRICITY ACCESS ELECTRICITY BILL ELECTRICITY BILLS ELECTRICITY CONNECTIONS ELECTRICITY CONSUMPTION ELECTRICITY COSTS ELECTRICITY DEMAND ELECTRICITY GENERATION ELECTRICITY POLICY ELECTRICITY PRICING ELECTRICITY SECTOR ELECTRICITY SERVICE ELECTRICITY SUBSIDIES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY UTILITY ENERGY CONSUMPTION ENERGY MARKETS ENERGY POLICIES ENERGY PRICES ENERGY STATISTICS EXPORTS FORECASTS FUEL FUEL SOURCES GAS GAS PRICES GDP GENERATION GENERATION CAPACITY GENERATION COSTS GROSS DOMESTIC PRODUCT HOUSEHOLD ANALYSIS HOUSEHOLD CONSUMPTION INEFFICIENCY INFLATION INTERNATIONAL ENERGY AGENCY KILOWATT HOUR LIFELINE TARIFFS LNG LOW LEVELS OF ACCESS LOW LEVELS OF CONSUMPTION LOW TARIFFS MINERAL RESOURCES MONTHLY CONSUMPTION NATURAL GAS NATURAL GAS PRICE NEW POWER PLANTS OIL PARTIAL EQUILIBRIUM ANALYSIS PEAK DEMAND PETROLEUM PETROLEUM PRODUCTS PETROLEUM SECTOR POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL ECONOMY OF TARIFF POWER POWER CONSUMPTION POWER DISTRIBUTION POWER GENERATION POWER GRID POWER PLANTS POWER PRODUCER POWER SECTOR POWER SECTOR REFORMS POWER SHORTAGES PRIMARY FUEL PRIVATE SECTOR QUANTITY OF ELECTRICITY REPUBLIC RURAL CONSUMERS RURAL ELECTRICITY RURAL ELECTRIFICATION RURAL ELECTRIFICATION PROGRAM RURAL HOUSEHOLDS SOURCE OF ENERGY SUBSIDIZATION SUPPLY COSTS TARIFF LEVELS TARIFF STRUCTURE TARIFF STRUCTURES UTILITIES UTILITY COMPANY Ahmed, Faizuddin Trimble, Chris Yoshida, Nobuo The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts |
| geographic_facet |
South Asia Bangladesh |
| description |
The electricity sector in Bangladesh has
been facing unprecedented challenges, with severe capacity
constraints and sector subsidies that quadrupled from 0.2
percent to 0.8 percent of gross domestic product (GDP)
between 2010 and 2012, driving the government's fiscal
deficit deeper. This policy note examines the poverty and
distribution impact of one such reform-residential
electricity tariff increases-along with their fiscal
implications. A challenge of such adjustments is how to
minimize their impact on the poor and vulnerable. Using
household survey data, this report studies the
distributional and fiscal implications of the residential
tariff adjustments between March 2010 and March 2012 on to
inform policy dialogue on the provision and targeting of
electricity subsidies. Electricity subsidies are defined as
the difference between the cost of supplying a unit of
electricity and the tariff the end-user is charged for a
given unit. Between 2010 and 2012, real cost of supply
increased almost 20 percent. This policy note focuses on
just one part of a much broader and complex system of
connected energy policies. The policy implications of this
analysis should only be considered in light of this broader
context. In particular, this note does not study in detail
the complex issues of generation and operational efficiency
(in transmission and distribution). Second, this note does
not study the political economy of tariff and subsidy
reform. Tariff increases have been a source of social
unrest, and planned increases could generate additional
unrest. It will be important for the government to consider
the political economy of further reform carefully. Moving
forward, both of the new slab systems being discussed could
relieve the fiscal burden of subsidies. |
| format |
Economic & Sector Work :: Policy Note |
| author |
Ahmed, Faizuddin Trimble, Chris Yoshida, Nobuo |
| author_facet |
Ahmed, Faizuddin Trimble, Chris Yoshida, Nobuo |
| author_sort |
Ahmed, Faizuddin |
| title |
The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts |
| title_short |
The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts |
| title_full |
The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts |
| title_fullStr |
The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts |
| title_full_unstemmed |
The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts |
| title_sort |
transition from underpricing residential electricity in bangladesh : fiscal and distributional impacts |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/01/17647682/transition-underpricing-residential-electricity-bangladesh-fiscal-distributional-impacts http://hdl.handle.net/10986/18362 |
| _version_ |
1764441565890084864 |
| spelling |
okr-10986-183622021-04-23T14:03:46Z The Transition from Underpricing Residential Electricity in Bangladesh : Fiscal and Distributional Impacts Ahmed, Faizuddin Trimble, Chris Yoshida, Nobuo ACCESS TO ELECTRICITY AGRICULTURE APPROACH BALANCE COAL CONNECTED HOUSEHOLDS CONSUMER PRICE INDEX CONSUMERS CONSUMPTION INCREASES CONSUMPTION LEVELS COST OF ELECTRICITY COSTS OF ELECTRICITY CROSS SUBSIDIES CROSS-SUBSIDIZATION CRUDE OIL CRUDE OIL PRICE DECISION MAKING DEMAND FOR ELECTRICITY DIESEL DISTRIBUTION COMPANIES DISTRIBUTION OF ELECTRICITY EFFECTIVE SUBSIDIES ELECTRIC POWER ELECTRIC POWER CONSUMPTION ELECTRIC SUPPLY ELECTRICITY ELECTRICITY ACCESS ELECTRICITY BILL ELECTRICITY BILLS ELECTRICITY CONNECTIONS ELECTRICITY CONSUMPTION ELECTRICITY COSTS ELECTRICITY DEMAND ELECTRICITY GENERATION ELECTRICITY POLICY ELECTRICITY PRICING ELECTRICITY SECTOR ELECTRICITY SERVICE ELECTRICITY SUBSIDIES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS ELECTRICITY UTILITY ENERGY CONSUMPTION ENERGY MARKETS ENERGY POLICIES ENERGY PRICES ENERGY STATISTICS EXPORTS FORECASTS FUEL FUEL SOURCES GAS GAS PRICES GDP GENERATION GENERATION CAPACITY GENERATION COSTS GROSS DOMESTIC PRODUCT HOUSEHOLD ANALYSIS HOUSEHOLD CONSUMPTION INEFFICIENCY INFLATION INTERNATIONAL ENERGY AGENCY KILOWATT HOUR LIFELINE TARIFFS LNG LOW LEVELS OF ACCESS LOW LEVELS OF CONSUMPTION LOW TARIFFS MINERAL RESOURCES MONTHLY CONSUMPTION NATURAL GAS NATURAL GAS PRICE NEW POWER PLANTS OIL PARTIAL EQUILIBRIUM ANALYSIS PEAK DEMAND PETROLEUM PETROLEUM PRODUCTS PETROLEUM SECTOR POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM POLITICAL ECONOMY OF TARIFF POWER POWER CONSUMPTION POWER DISTRIBUTION POWER GENERATION POWER GRID POWER PLANTS POWER PRODUCER POWER SECTOR POWER SECTOR REFORMS POWER SHORTAGES PRIMARY FUEL PRIVATE SECTOR QUANTITY OF ELECTRICITY REPUBLIC RURAL CONSUMERS RURAL ELECTRICITY RURAL ELECTRIFICATION RURAL ELECTRIFICATION PROGRAM RURAL HOUSEHOLDS SOURCE OF ENERGY SUBSIDIZATION SUPPLY COSTS TARIFF LEVELS TARIFF STRUCTURE TARIFF STRUCTURES UTILITIES UTILITY COMPANY The electricity sector in Bangladesh has been facing unprecedented challenges, with severe capacity constraints and sector subsidies that quadrupled from 0.2 percent to 0.8 percent of gross domestic product (GDP) between 2010 and 2012, driving the government's fiscal deficit deeper. This policy note examines the poverty and distribution impact of one such reform-residential electricity tariff increases-along with their fiscal implications. A challenge of such adjustments is how to minimize their impact on the poor and vulnerable. Using household survey data, this report studies the distributional and fiscal implications of the residential tariff adjustments between March 2010 and March 2012 on to inform policy dialogue on the provision and targeting of electricity subsidies. Electricity subsidies are defined as the difference between the cost of supplying a unit of electricity and the tariff the end-user is charged for a given unit. Between 2010 and 2012, real cost of supply increased almost 20 percent. This policy note focuses on just one part of a much broader and complex system of connected energy policies. The policy implications of this analysis should only be considered in light of this broader context. In particular, this note does not study in detail the complex issues of generation and operational efficiency (in transmission and distribution). Second, this note does not study the political economy of tariff and subsidy reform. Tariff increases have been a source of social unrest, and planned increases could generate additional unrest. It will be important for the government to consider the political economy of further reform carefully. Moving forward, both of the new slab systems being discussed could relieve the fiscal burden of subsidies. 2014-05-15T19:37:33Z 2014-05-15T19:37:33Z 2013-01 http://documents.worldbank.org/curated/en/2013/01/17647682/transition-underpricing-residential-electricity-bangladesh-fiscal-distributional-impacts http://hdl.handle.net/10986/18362 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work South Asia Bangladesh |