Description

Given the importance of electricity supply for economic growth and private sector development, this paper assesses the electricity sector's sustainability and fiscal risks potentially arising from tariffs below cost-recovery levels, rising electricity import costs, hydrological shocks, and migration of large customers to self-generation. These factors have weakened profitability and increased debt. Scenario analysis to estimate costs under a baseline and adverse scenario are considered. A policy framework is proposed that is grounded in transparency and could help restore financial sustainability and safeguard electricity supply.

More publications in this series: Selected Issues Papers