electricity consumers in their own electricity-generating capacity, either as back-up to the public supply or as a replacement for it. This response to underinvestment in public supply is most notable in those countries where the quality of electricity supplied by public utilities is poor and deteriorating, such as India, Indonesia and Nigeria. In Indonesia, for example, autonomous electricity producers own 15 GW out of the country's 40 GW of total installed capacity. This trend could become more significant in the future, if shortfalls in investment in centralised production and transmission persist. Overcoming these obstacles to investment will not be easy. It will require major improvements in governance and continued restructuring and reform in the electricity sector. That will test the institutional capacity of developing countries. Perhaps the most pressing challenge is to reform tariff structures to make prices reflective of costs and to improve revenue collection. It is a major challenge to do this in a way that does not unduly hurt poor households that are not able to afford even basic electric services. Given the large amount of investment needed in distribution networks in these countries (about USD 2 trillion, or 40% of total power sector investment, over 2003-30), reform of the electricity distribution sector will be of particular importance. In many developing countries, the priority is to reduce non-technical losses from theft of electricity, utility goods and cash, and from non-payment of bills. Such reforms are difficult and take considerable time, at least five years and more likely ten or SO. The gap between investment needs and actual investment is likely to continue for some time in the worst-affected countries, with blackouts and brownouts remaining a major problem. 6. Implications for industry structure and financing Liberalisation and market reforms, largely driven by the goal of achieving more efficient investment in and operation of the electricity supply industry through more private se