Methodological Proposal for Targeting Electric Subsidy "Tarifa De La Dignidad" in Residential Users of the Electric Companies of Ecuador
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Abstract
This paper includes a proposal for targeting the dignity tariff subsidy on residential users of electric power distribution companies in Ecuador. For targeting, the grouping data technique is used based on technical, geographical, and socioeconomic user’s data.
This paper describes the process necessary to collect, clean, and process the data for targeting the subsidy. Then, this paper shows the process to match the data and consolidate it into a single database of residential users. In a next phase, this paper defines a poverty equation that considers, in a weighted way, the technical and socioeconomic characteristics of the users and poverty equation allows calculating the poverty level of users. Then, the way to group users according to their poverty level is described, as well as the way to establish the best number of groups to be generated among users. Finally, this paper describes how to define which users and user groups should or should not receive the subsidy.
This paper has been applied to the residential users of the Quito District Metropolitan and, for these users, the results of the targeting are showed. For the study case the estimated savings that the State would receive for including the targeting methodology are shown too.
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References
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