Since the 1980s there have been four waves of tariff reform. In the now-ongoing fourth wave, there is an opportunity to move ahead with efficient cost-reflective tariffs because of the widespread deployment of smart meters.
Transmission Tariff Reform Broadly Neutral: The power transmission and distribution tariff reforms piloted in several regions in China are likely to add more predictability and stability to the grid operator's cash flow, although the exact financial impact on the grid operators remains unclear in the near term.
Some Directors expressed disappointment over the delay in implementing the electricity tariff reform. In this regard, Directors welcomed the authorities' commitment to implement the reform as soon as possible or adopt compensatory fiscal measures.
Not unlike the experiences of other newly democratised polities (see Milner and Kubota 2005), the ANC-led government soon embarked on an ambitious tariff reform path, but without any overarching industrial policy framework.