A review of impacts of electricity tariff reform in Africa

African power sectors are plagued with financial unsustainability, low rates of grid connection, and high consumer prices relative to other regions in the Global South. Reforms to electricity tariffs are a tool for decision-makers to reduce costly energy subsidies, expand grid access, improve service quality, and increase affordability. This review examines 82 papers in the academic literature on the impacts of electricity tariff reform in Africa, organized around three modalities of reform: bill payment method, tariff structure, and tariff rate, with results disaggregated by sector where appropriate. Evidence on payment reform indicates that prepaid meters may encourage residential electricity conservation and limit arrears; increasing block tariff structures are highly regressive and poorly targeted; and demand for electricity is price inelastic across all sectors, so tariff increases should be accompanied by protections for low-income consumers.