Setting the Prices Right for Infrastructure Services

implementation

The broad objective of this Technical Cooperation (TC) is to study the pricing of water and sanitation, energy, and transport services in the region. The setting of prices responds to different objectives (productive, allocative and distributive efficiency) that in their practical implementation generate trade-offs. In a first stage, this TC will focus on pricing and its impact on equity. Technological disruption is changing the provision of services, impacting the sustainability of pricing systems, most of which have significant cross-subsidies between group of consumers. The most common pricing practice in developed countries and LAC will be reviewed. In a second stage, a network of centers will be organized to identify and evaluate the impact of recent pricing reforms on distributive and allocative efficiency. Finally, the results of the TC will be disseminated.