Analyzing Foregone Cash to Improve Utility Performance

The level of performance of an electric utility is determined by the soundness of its financial situation, the efficiency of its technology, and the quality of service it provides customers. Its financial underpinning is a balance of costs and reve...

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Main Authors:	Balabanyan, Ani, Hankinson, Denzel, Nash, Stephen, Singh, Arun
Format:	Technical Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	UTILITY EFFICIENCY ELECTRIC UTILITIES POWER SECTOR REFORM UTILITY REFORM UTILITY CASH FLOW RESIDUAL LOSS FOREGONE CASH COST RECOVERY
Online Access:	http://documents.worldbank.org/curated/en/371961628830813641/Analyzing-Foregone-Cash-to-Improve-Utility-Performance-Topical-Paper-Utility-Performance-and-Behavior-in-Africa-Today http://hdl.handle.net/10986/36181

id	okr-10986-36181
recordtype	oai_dc
spelling	okr-10986-361812021-08-24T05:10:43Z Analyzing Foregone Cash to Improve Utility Performance Balabanyan, Ani Hankinson, Denzel Nash, Stephen Singh, Arun UTILITY EFFICIENCY ELECTRIC UTILITIES POWER SECTOR REFORM UTILITY REFORM UTILITY CASH FLOW RESIDUAL LOSS FOREGONE CASH COST RECOVERY The level of performance of an electric utility is determined by the soundness of its financial situation, the efficiency of its technology, and the quality of service it provides customers. Its financial underpinning is a balance of costs and revenue (from customer payments, government, and other sources). But revenue is not as straightforward as it might seem. The concept of foregone cash addresses the ‘cash on the table’ that pays for operations and servicing debt (revenue collected divided by the cost of operations and debt). The problem is the table may not have all the cash that ought to be there, such as money owed because of nonpayment’s by customers and money lost through inefficiencies in power generation or delivery. Consequently, there is a latent revenue that, if fixed, can provide vital improvements to a utility’s financial performance. This note analyzes the elements involved in understanding foregone cash in the context of cost recovery. 2021-08-23T16:23:52Z 2021-08-23T16:23:52Z 2021-08-12 Technical Paper http://documents.worldbank.org/curated/en/371961628830813641/Analyzing-Foregone-Cash-to-Improve-Utility-Performance-Topical-Paper-Utility-Performance-and-Behavior-in-Africa-Today http://hdl.handle.net/10986/36181 English Utility Performance and Behavior in Africa Today; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Africa Africa Eastern and Southern (AFE) Africa Western and Central (AFW) Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	UTILITY EFFICIENCY ELECTRIC UTILITIES POWER SECTOR REFORM UTILITY REFORM UTILITY CASH FLOW RESIDUAL LOSS FOREGONE CASH COST RECOVERY
spellingShingle	UTILITY EFFICIENCY ELECTRIC UTILITIES POWER SECTOR REFORM UTILITY REFORM UTILITY CASH FLOW RESIDUAL LOSS FOREGONE CASH COST RECOVERY Balabanyan, Ani Hankinson, Denzel Nash, Stephen Singh, Arun Analyzing Foregone Cash to Improve Utility Performance
geographic_facet	Africa Africa Eastern and Southern (AFE) Africa Western and Central (AFW) Sub-Saharan Africa
relation	Utility Performance and Behavior in Africa Today;
description	The level of performance of an electric utility is determined by the soundness of its financial situation, the efficiency of its technology, and the quality of service it provides customers. Its financial underpinning is a balance of costs and revenue (from customer payments, government, and other sources). But revenue is not as straightforward as it might seem. The concept of foregone cash addresses the ‘cash on the table’ that pays for operations and servicing debt (revenue collected divided by the cost of operations and debt). The problem is the table may not have all the cash that ought to be there, such as money owed because of nonpayment’s by customers and money lost through inefficiencies in power generation or delivery. Consequently, there is a latent revenue that, if fixed, can provide vital improvements to a utility’s financial performance. This note analyzes the elements involved in understanding foregone cash in the context of cost recovery.
format	Technical Paper
author	Balabanyan, Ani Hankinson, Denzel Nash, Stephen Singh, Arun
author_facet	Balabanyan, Ani Hankinson, Denzel Nash, Stephen Singh, Arun
author_sort	Balabanyan, Ani
title	Analyzing Foregone Cash to Improve Utility Performance
title_short	Analyzing Foregone Cash to Improve Utility Performance
title_full	Analyzing Foregone Cash to Improve Utility Performance
title_fullStr	Analyzing Foregone Cash to Improve Utility Performance
title_full_unstemmed	Analyzing Foregone Cash to Improve Utility Performance
title_sort	analyzing foregone cash to improve utility performance
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/371961628830813641/Analyzing-Foregone-Cash-to-Improve-Utility-Performance-Topical-Paper-Utility-Performance-and-Behavior-in-Africa-Today http://hdl.handle.net/10986/36181
_version_	1764484674789310464

Analyzing Foregone Cash to Improve Utility Performance

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