Investor Presentaiton
Transforming Subsidy From Commodities Based Into Targeted People In 2023
The policy will be taken gradually and very carefully, depend on the updated social and economic recovery.
م
Transformation Concept
Getting the
Price Right
Applying an efficient market price on
LPG and electricity for the beginning
step.
Existing Condition
Not targeted subsidy benefits the higher income household thus
considered regressive (inclusion error);
Social assistance program mechanism reduces the inclusion
error, thus considered more effective at alleviating the poverty
and inequality.
Protect
the Poor
Certain amount of assistance is provided
for the targeted beneficiaries. The
amount is given in fix value that is
enough to maintain their energy
consumption level.
Exit Strategy
Transforming energy subsidy from commodity based into
targeted subsidy or social assistance program
Transforming LPG subsidy from commodity based into targeted
subsidy or social assistance program for the poor and vulnerable
households.
☑ Implementing targeted electricity subsidies for R1 450 VA,
accompanied by a tariff adjustment policy for non-subsidized
customers
Transforming LPG and electricity subsidies that are integrated with
the social assistance gradually, in line with the readiness of data
and infrastructure.
Source: Ministry of Finance
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