“Electricity subsidies (…) are financial subsidies that result from below-cost pricing, with cost measured as accounting costs. Subsidies are measured as the difference between the price of electricity paid by consumers and the average cost of supply.”
Source: Komives, K. et al. 2009. "Residential Electricity Subsidies in Mexico - Exploring Options for Reform and for Enhancing the Impact on the Poor". World Bank Working Paper, No. 160. Washington, DC: The World Bank. <https://openknowledge.worldbank.org/bitstream/handle/10986/5959/471070PUB0MX0E101OFFICIAL0USE0ONLY1.pdf?sequence=1>. Accessed 10 June 2020.