an official account, while the bill credit and more flexible payment options proposed above would help them pay their bills and stay connected.

# **Ensuring the success of the reform**

International experience illustrates how countries that succeeded in reforming subsidies did so by addressing issues of concern to the public through a clear communications campaign, and through careful sequencing of the reform.

# **_Packaging the reform_**

The qualitative analysis shows that consumers are primarily concerned about affordability, reliability of supply, and issues related to transparency and accountability. To convince the public, the reform should address each of these issues with a clear plan of action and timeline for results. Affordability can be addressed in the near term by introducing more generous compensation mechanisms targeted to a subset of the population that genuinely needs assistance. In the longer term, affordability and reliability of supply can be improved through investment in infrastructure and better governance. Concrete actions can also be taken to improve transparency and accountability, especially relating to the billing system and resolution of grievances.

Consumers do not trust the accuracy of their bills, and perceive corruption in their interactions with service providers. Investment in capacity to read meters and clearer presentation of the bills themselves is a known priority, and the government has already taken action in this regard. Households also report feeling unable to assert their rights as consumers. DISCOs in Pakistan have customer service mechanisms in place, including dedicated customer service centers, websites for lodging complaints, call centers and SMS services (Table 3). These mechanisms could be strengthened to effectively and rapidly respond to queries and complaints. The government could encourage DISCOs to experiment with these techniques by rewarding the best performers and publicizing their approaches.

The government could also put in place or strengthen grievance redress mechanisms (GRMs) and provide training to staff to address consumer concerns in a manner that builds trust. A GRM will be essential to manage the transition away from universal subsidies, and to deal with appeals to selection decisions under a new targeting method. Box 6 provides an example of how the GRM could be designed. Multiple implementation partners may need to play a role in redressing grievances: identity verification grievances handled by NADRA, billing data grievances by DISCOs, and eligibility/targeting grievances by BISP.

To further strengthen citizen engagement, a ‘social compact’ approach could be adopted. A social compact is a formal arrangement in which the views of citizens are sought at regular forums at the local level, and actively incorporated in policy making. The social compact approach aims to increase mutual trust and accountability between service providers and consumers through stakeholder consultations and participatory monitoring. The social compact approach was implemented in two provinces in Southeastern Anatolia, Turkey— the region with the highest nonpayment rates in the country. Stakeholder committees representing consumers and the electricity company were established. These committees 20