Affordability programs

Usually refers to special schemes set up and/or managed by utility companies which are designed to minimize the burden of utility costs for customers of limited means. These programs are usually targetted at specific classes of low-income residential consumers (e.g. unemployed or pensioners) and institutional customers (e.g. schools, non-profit organizations, hospitals and other essential public-sector services).

Benefits provided by these programs can include forgiveness of arrearage (unpaid bills), "fuel funds" (charitable or sponsored), discounts, linking of energy costs to income, and protection against service disconnection in extreme weather. For institutional consumers these plans can also include free DSM (demand-side management) to assist in overall reduction in energy use.

Similar financial terms

Tandem programs
Under Ginnie Mae, mortgage funds provided at below-market rates to residential mortgage buyers with FHA Section 203 and 235 loans and to developers of multifamily projects with Section 236 loans initially and later with Section 221(d)(4) loans.

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Administrative pricing rules

IRS rules used to allocate income on export sales to a foreign sales corporation.


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