There are three main arrangements for subsidies (see Table 2 on page 14): from
customer to customer (cross subsidy), from government direct to customer (direct
subsidy outside the tariff) and from government to customer, via the utility (direct
subsidy within the tariff). It is worth noting that all the tariff designs listed in Table 1
on page 11 can be used to achieve subsidy effects from non-poor to poor customers.
For example, in theory an Increasing Block Tariff is essentially a cross subsidy: if poor
customers reduce their consumption so that all the units they consume are charged
within the cheapest block, non-poor, higher consuming customers pay more to make