Private Enterprise and Financial Markets > Infrastructure and Financial Markets > Infrastructure > Energy
Workshop on the Political Economy of Public Utilities Tariffs - Second Workshop
(09/04, En)
The
Sustainable Development Department and
the Office of Learning of the Human Resources Department
Workshop
The Political Economy of Public Utilities Tariffs
September 9, 2004
Room B-302, Annex B, Third Floor, 1350 New York Avenue
While one might have hoped that improved performance and efficiency gains brought about by reform would have reduced costs sufficiently to re-establish the balance between costs and revenues in public utilities, this is more easily said than done. Furthermore, fiscal constraints limit the amount of subsidies available, there is no easy way out and, hence, no alternative to rising tariffs. It is not difficult to see the reasons?political and otherwise?why this has not been done. However, there is no other way if the fundamental problem of ensuring adequate resources to finance sector activities is to be solved. Understanding the reasons why people consider water and electricity as an entitlement and refuse to pay market prices for them, and identifying the factors behind successful experiences is crucial for the sustainability of the infrastructure sectors and reforms in the region.
This second workshop focused on the discussion of two cases, one in water supply and another in electricity located in the same region, which present an interesting opportunity to compare the difficulties in dealing with fraud and non-payment in low income populations. Mr. Jose Maria Bustillo and Mr. Victor Cruz Union President and Vice president Union Fenosa Colombia presented the electricity case and Mr. Luis Fernando Arboleda, General Manager of Agua Alcantarillado y Aseo de Barranquilla presented the water supply case.
Agenda and Presentations
| 9:00-9:15 | Introduction Jaime Millán, Principal Energy Economist, Infrastructure and Financial Markets Division, IDB Luigi Manzetti, Professor of Political Science, Southern Methodist University Carlos Ruffin, Assistant Professor of Strategic Management, Babson College, Wellesley Massachusetts |
| 9:15-10:15 | Controlling theft and cost recovery in electricity: The case of the Colombian Atlantic Coast Speakers José Maria Bustillo and Victor Cruz, President and Vice-president Union Fenosa, Colombia Moderator Luigi Manzetti, Professor of Political Science, Southern Methodist University |
| 10:15 - 10:30 | Discussant: Carlos Trujillo, Principal Infrastructure Specialist, FI2, IDB |
| 10:30 - 11:00 | Break |
| 11:00 - 12:15 | Discussion led by Luigi Manzetti and Carlos Rufin |
| 12:15 - 13:15 | Lunch |
| 13:15 - 14:15 | Controlling theft and cost recovery in water supply: The case of the AAA in Barranquilla Speaker Luis Fernando Arboleda, Manager AAA Moderator Luigi Manzetti, Professor of Political Science, Southern Methodist University |
| 14:15 - 14:30 | Discussant: Chris Jennings, Senior Sanitation Specialist, ENV1, IDB |
| 14:30 - 15:45 | Discussion led by Luigi Manzetti and Carlos Rufin |
| 15:45 - 16:15 | Final Remarks Luigi Manzetti and Carlos Rufin |
Last updated: 02/26/07
