The reform towards cost-reflective tariffs, based on sound economic principles, is of crucial importance for safeguarding the financial viability of energy utilities and of the electricity sector as a whole, as well as for ensuring that appropriate incentives are in place for attracting necessary investments in the sector. Under this context, VIS along with E3M have been commissioned by NARUC (assignment funded by USAID) to develop a Primer on the impact of electricity tariff reform on investment and economic development that will serve as a basis for a further multiyear project (consisting of several Primers) by NARUC, aimed at creating a tool kit that will complement USAID’s efforts to encourage cost-based tariffs.