Elite Capture

Unlocking Energy Access: Reforming India's Electricity SubsidiesIndia faces the challenge of providing affordable electricity to all its citizens while ensuring the financial viability of its power sector. This World Bank study, Elite Capture: Residential Tariff Subsidies in India, analyzes the complex issue of residential electricity subsidies through a poverty lens. Discover how inefficient tariff policies lead to subsidy leakage, with 87% of payments benefiting non-poor households. Explore the impact of tariff design, cross-subsidies, and consumption patterns on subsidy incidence. Learn about state-level variations and best practices for better targeting. This study offers valuable insights and policy recommendations for:- Improving energy access for the poor- Reducing fiscal burdens on state governments- Promoting financial sustainability of distribution utilitiesThis insightful analysis is essential for policymakers, energy professionals, and researchers seeking to create a more equitable and efficient energy future for India.