This study answers two questions aboutpower sector reform in Moldova. First, did reform affect thepoor and the non-poor differently? Second, are householdconsumption patterns different for private and publicdistribution networks? The study concludes that reforms havenot disproportionately affected the poor. The gap inelectricity consumption between poor and non-poor isclosing, as a result of improvements in the supply ofelectricity, particularly in rural areas, and thesignificant growth in income over the past four years.Moldova's residential electricity consumption remainsexceptionally low and is probably highly inelastic,especially for the very poor. This implies that unless theyare accompanied by increases in income, future tariffincreases could create large potential consumer welfarelosses-as well as large revenue gains for the utility. Italso implies that there may be room for substantial welfaregains by helping households better manage their electricityexpenditures. Measures to do so could include introducingprepayment swipe cards for meters, in order to reduce boththe costs and anxiety associated with disconnections;encouraging the poor to use more energy-efficientrefrigeration and lighting technologies, through vouchers orother similar programs; and having the public sector defraythe cost of extending access to clean, inexpensive gas insmall towns where people rely on electricity for heating, ifit can be done in a way that limits the financialliabilities for the government.