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The majority of these live in rural areas in sub-Saharan Africa and South Asia. In Africa, more than 526m people do not have electricity  more than 75% of the population. In Brazil around about 5% of the population does not have access to electricity (ESMAP 2005). JZJ Background Access largely overlooked in the 1990s as countries around the world implemented major reforms of the electricity sector. Reforms typically included unbundling, deregulation, liberalisation and privatisation.  Privatization and deregulation of energy networks does reduce costs and thus increases the affordability of connections and extending grids provided there is competition World Bank 2000. 0Z /#DBackground  disappointing results The most outstanding social impact of power sector reforms is the inability of reforms to increase access to electricity among the poor after 15 years of reform Afrepren 2005.  The Latin American experience shows that the poor are often the last to benefit from increased access due to reform Chisari, Estache and Waddams Price 2001 *((RP |'.Electricity is important for poverty reductionEducation (lighting, ICT, Teacher Training) Health (refrigeration, lighting for safe procedures, operations) Household safety Gender balance Economic development "Rural electricity - issuesLow rates of access. The unconnected are those with least income. High cost of service delivery due to dispersion. Little commercial incentive for any distributor to provide service.Urban electricity - issuesHigher rates of access than rural and lower cost of extension. Problem is ability/willingness to pay. High levels of illegal connections. Social exclusion. Little commercial incentive for any distributor to provide service.# Weak capacity fDecentralisation independent electricity distributors. some areas with low income, high unemployment and low consumption. Cost recovery difficult and regional inequality exacerbated potentially. Weakest distributors are those with most need and yet are those least likely to be able to obtain funding. ,4Z<,!$Internal Revenue Generation: TariffsPrices have increased in most countries following electricity sector reforms with a shift to  marginal cost pricing .  In all circumstances, prices should be set at a level which allows energy providers to recover the long run marginal cost of delivering the service including a fair return on investment. World Energy Council (2001).85w-$Internal Revenue Generation: TariffsBut what costs do you cover? Independent Power Producers?, Currency fluctuation?, Leakages and shortages?, Private sector profits? And what is a  fair return ? And how can you tell what the costs are? 8.".Internal Revenue Generation:Revenue Collection//.Reduce system losses Illegal connections Technical faults Billing errors Enforce payment Prepayment meters. Disconnection for non-payment. Community support  ease of payment, community agents etc.tZ4ZZ2Z;Z42;(&Internal Revenue Generation: SubsidiesConsumption subsidies are problematic they benefit the better off that already have connection; The poor do not have low consumption Subsidised connections are preferred. But there is evidence of low levels of affordability for consumption. But effective targeting is difficult. J&Z`ZZZ&`%Cost ReductionWithin utility Reduce leakages Improve productivity By consumers Encourage more energy efficient usage Cheaper technology such as off-grid systems in rural areas`& &<& &< Policy implications-Middle income countries may be able to finance increased access through IRG. Poor countries cannot. Need a national strategy and coordinated participatory approach. Support poor users eg through billing systems and payment mechanisms. 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(2 tEfor all" December 2006.-@"Tahoma-. 3312 Ensuring sustainable access .-@"Tahoma-. 3342 for the poor through internal .-@"Tahoma-. 33$2 *#revenue generation 0.-@Times New Roman-. 33 2 *{$.-@"Tahoma-. 332 5< electricity.-@"Tahoma-. 2 L9 Brasilia 2006.-@"Tahoma-. 2 W;Kate s.-@"Tahoma-. 2 WKBayliss.-՜.+,0      Apresentao na tela ~Y ArialTimes New RomanTahoma WingdingsMonotype CorsivaBlends\Ensuring sustainable access for the poor through internal revenue generation electricity Overview Background Background#Background disappointing results/Electricity is important for poverty reductionRural electricity - issuesUrban electricity - issuesWeak capacity%Internal Revenue Generation: Tariffs%Internal Revenue Generation: Tariffs/Internal Revenue Generation:Revenue Collection'Internal Revenue Generation: SubsidiesCost ReductionPolicy implications"Its not just about the connection Slide 17 Fontes usadasModelo de designTtulos de slides*_}~Ana Claudia PecchiAna Claudia Pecchi  !"#$%&'()*+,-./0123456789:;<=>?ABCDEFGHIJKLMNOPQRSTUVWXYZ\]^_`abdefghijmRoot EntrydO)Current UsercSummaryInformation(@5PowerPoint Document(~DocumentSummaryInformation8[Root EntrydO)\`#qCurrent UserJSummaryInformation(@5PowerPoint Document(~  !"#$%&'()*+,-./0123456789:;<=>?ABCDEFGHIJKLMNOPQRSTUVWXYZ\]^_`abm&_}~51ԹUnited Nations