The debate about power subsidies resurfaces

From the newsletter

Nigeria this week announced targeted electricity subsidies for vulnerable families, while South Africa plans to quadruple free power for low-income homes to 200 kWh per year. Subsidies for rural communities cost governments billions and have pushed utilities into debt. Yet they remain vital for connecting the rural poor.

• Subsidies sit alongside official moves to increase competition with off-grid companies serving the same customers, pushing for better and more affordable power.

• Countries like Ethiopia have recently lowered subsidies by raising electricity tariffs, hoping to create a more level playing field between the national grid, off-grid providers and independent power producers.

More details