Urgent call for district heating tariffs reform in Belarus

AN URGENT CALL FOR DISTRICT HEATING TARIFFS REFORM IN BELARUS KOTENLHAA ПОСТОРОНННм ВхОд ЗАПРЕЩЁН Investments in energy NATURAL GAS COST IS INCREASING RESIDENTIAL HEATING COMPETITIVENESS FISCAL RISKS ARE HIGH TARIFFS ARE LOW IS UNDERMINED efficiency can help further mitigate tariff increases by The cost of natural Residential tariffs Cross-subsidies Underpriced heating incites fiscal risks and gas has increased sharply in the past decade. for district heating are well below undermine the competitiveness macroeconomic the cost of service. of business. vulnerabilities. Up to 21% of cost-recoverY reducing households heat cost ndustrial customers $47/tcm in 2005, $263 in 2011 pay 150% of real cost In 2012 a cost of underpriced heat accounted for by 46% $1,000,000,00 Mair HEATING SUBSIDIES ARE UNFAIR AND POORLY TARGETED SUBSIDIES ARE EXPECTED TO BE DISTRIBUTED AMONG THE POOR IN BELARUS HEATING SUBSIDIES BENEFIT WEALTHY MORE THAN THE POOR HIGHEST INCOME Top two income quintiles receive 42.1% of the overall heating subsidies. HIGH INCOME Subsidies are for those who need them the most! MIDDLE INCOME Two lowest quintiles receive just 24% LOW INCOME The poorest part of the population receives 3.5%, LOWEST INCOME Rural households receive about 10.4% THE WORLD BANK Heat Tariff Reform and Social Impact Mitigation This infographic is about 2% of the report's findings and recommendations. Please download the report at www.worldbank.org/belarus and find out more! IBRD. IDA | WORLD BANKGROUP Recommendations for a Sustainable District Heating Sector in Belarus