Residential Electricity Subsidies in Mexico: Exploring Options for Reform and for Enhancing the Impact on the Poor


The World Bank
Kristin Komives
Todd Johnson
Jonathan Halpern
Jose Luis Aburto
John Scott
1 February 2009

This book explains the current electricity subsidies to residential consumers in Mexico and the current distribution of subsidies across income classes. It also explains how alternative subsidy mechanisms could improve distributional and fiscal performance. The goal of the book is to help incite and inform discussion in Mexico about how to redirect subsidies toward the poor. The findings also offer lessons for other countries that are planning tariff reforms in their electricity sectors.