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Utility cost recovery: tackle inefficiency before increasing tariffs

Apr 7, 2021

Raising tariffs to cost recovery levels is often considered a prerequisite of infrastructure sector reforms. While immediate tariff increases are often publicly unacceptable and politically infeasible, case studies across the power and water sectors provide evidence that achieving cost recovery through efficiency gains which reduce the target cost recovery level and win public support is a path to financial viability and sustainable sector improvements. READ ECA’s INSIGHT HERE.

 

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