20 upper four of the five blocks are explicitly subsidized, the largest unit subsidy reserved for the block covering 801 to 2,000 kWh a month.

Subsidized lifeline rates are limited only to those consuming less than the cap in nine countries (Benin, Cameroon, Cabo Verde, Gabon, Ghana, Mozambique, Nigeria, São Tomé and Príncipe, and Togo), shifting households to tariffs for the next tier for the entire consumption if the cap is exceeded. This has the same effect as volume‐differentiated tariffs in Gabon, Mozambique, and Nigeria. Not having access to the subsidy by exceeding the limit by even 1 kWh makes it more difficult for the poor when the size of the block size is relatively small (say less than 50 kWh). The median increase in the effective unit energy charge for consuming more than the limit on the first block is 68 percent. There is large variation across countries, however, ranging from 4 percent in The Gambia and 7 percent in Senegal to 340 percent in Madagascar to 450 percent in Kenya and Zimbabwe. In Mali, pre‐paid customers do not lose access to the low rates for the first two blocks and tax exemption even if they consume more than 100 kWh, but post‐paid customers lose both benefits if 100 kWh is exceeded.

Table A.6 in the annex provides additional information, including the number of schedules and blocks and the type of tariffs (increasing block or volume‐differentiated) in each of the 39 countries. Among the 22 countries with household survey data, only Rwanda had a single tariff schedule with one block and no fixed charges. All other countries had more than one schedule, more than one block, or both, making back‐calculation of kWh consumed from spending on electricity not possible.<sup>9</sup> Increasing block tariffs were the most common tariff type, but there are several with volume‐differentiated tariffs, of which three have volume‐differentiated tariffs only between the first and second blocks, with increasing block tariffs above the second block. In countries with volume‐differentiated tariffs, exceeding the lifeline block increases the unit cost of the lifeline volume by at least 47 percent (São Tomé and Príncipe), and as much as 268 percent in Nigeria, although many customers falling in the lifeline category are not being metered there. Eleven countries list separate schedules for prepaid customers.

Table A.7 compares effective unit charges (US$/kWh) for consuming 30, 50, 100, and 250 kWh a month, inclusive of taxes and all fixed charges. Fixed charges punish low‐consumption households. For example, unit tariffs (price per kWh) are higher for monthly consumption of 30 kWh than 50 kWh in 14 countries due solely to fixed charges. The median rises from US$0.12/kWh for 30 and 50 kWh to US$0.14 for 100 kWh and US$0.17 for 250 kWh, reflecting generally progressive tariff schedules. The table also shows the payment that needs to be made to connect to grid electricity for the first time. Some countries do not charge for connection or charge very little (US$2 in Cabo Verde, US$13 in Swaziland, and US$31 in Mauritius), but others have high fees, the highest of which is $680 in Botswana. Botswana gives an option of paying over 18, 60, or 180 months, but the first payment is the same irrespective of the payment period and is high at US$140. The household survey data show that about two‐fifths of customers select 18 months (no interest charged), one‐quarter settle the connection charge in a single payment, one‐fifth pay over 60 months (prime interest rate minus 0.5 percent), and one‐tenth pay over 180 months (prime interest rate). The percentage of households in each quintile selecting a particular payment plan is surprisingly independent of quintile for the one‐off payment. The share is twice in the bottom two quintiles as in the top quintile for the 18‐month option and about the same difference for the 60‐month option. The largest difference is seen with the 180‐ month option, selected by 13 percent of the households in the bottom quintile but only 5 percent of those in

> 9 If there is only one schedule with multiple blocks, as in Benin, Botswana, Burundi, Cameroon, Chad, Ghana, Kenya, Niger, Sierra Leone, and Uganda, back‐calculation from monthly spending on electricity is possible if there is no sharing of meters. However, as will be seen later, meter‐sharing is widespread in Africa.