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p. 21 of 30 BACK | NEXT Introduction Regional Energy Context Energy Policy Issues Structural Reform Energy Efficiency Energy Pricing Background Power Subsector Hydrocarbon Subsector Rural Energy Energy and Environment Rural Energy Development Regional Cooperation and Energy Development Conclusions and Recommendations

Bank Policy Initiatives for the Energy Sector : Energy Policy Issues : Energy Pricing

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Rural Energy

55. Energy utilities should not be used as vehicles for welfare transfer across consumer groups. Forms of subsidies aimed at promoting commercial energy in rural areas should be transparent, should clearly reach the target groups, should preferably be financed out of tax revenue and not through cross subsidization, and should be capable of being phased out. Rural energy pricing is discussed further in the section on Rural Energy Development in this paper.

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