Workshop on the Political Economy of Public Utilities Tariffs - Third Workshop

(11/04, En)

The Sustainable Development Department and
the Office of Learning of the Human Resources Department
of the Inter-American Development Bank

organized the Third Workshop on

The Political Economy of Public Utilities Tariffs

November 19, 2004
Room Andres Bello West, 9th Floor, 1300 New York Avenue
Washington, D.C.



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 third workshop presented the discussion of two cases, one in water supply and another in electricity addressing the crucial issue of time consistency in tariff policy of public utilities. The problems arising after the concession to a private operator of the water supply company of Guayaquil, Ecuador, were discussed by Mr. Yvone Mellinger manager of InterAgua, and by Mr. Jose Luis Santos, the regulator. The problems in maintaining cost recovery tariffs in the electricity sector of Dominican Republic after privatization were discussed by a representative of AES, Mr. Anibal Mejia, and by Mr. Georges Reinoso, former regulator.


Agenda

click here to download the Agenda (pdf format)


Presentations


Introduction

Antonio Vives, Deputy Manager, SDS/PEF, IDB


Distribution Tariffs control after Privatization in Dominican Republic Electricity Sector


Panel Members


Anibal Mejia, Regulation Director AES, Santo Domingo

Presentation


Georges Reinoso, Former Regulator

Presentation - Speech


Nestor Roa, Infrastructure Specialist, RE2, IDB


Moderator

Carlos Rufin, Assistant Professor of Strategic Management, Babson College


Tariffs after Concession in Guayaquil Water Supply Company


Panel Members


Yvon Mellinger, Manager InterAguas


Jose Luis Santos, Regulator

Presentation


Victor Traverso, EN3, IDB


Moderator

Luigi Manzetti, Professor of Political Science, Southern Methodist University


Final Remarks


Luigi Manzetti, Professor of Political Science, Southern Methodist University

Carlos Rufin, Assistant Professor of Strategic Management Babson College, Wellesley Mass.

Jaime Millan, SDS/IFM, IDB


Last updated: 02/26/07