Utility Pricing and the Poor: Lessons from Armenia

'Utility Pricing and the Poor' evaluates the 1999 electricity tariff increase and the potential for improved water-sector cost recovery, with a particular focus on service accessibility and affordability for the poor. A two-stage approach is recommended. In the first stage, revenues should be increased by ensuring payment from households that have reliable service but are not paying their bills. After collection capacity is strengthened, the utility should implement a program of tariff adjustment, based on improved service and meter-based billing.