Impact of Prepayment Metering Arrangement on Electricity Consumption in Nigeria: Case Study of the Redemption Camp, Mowe, Ogun State and Osogbo Town, Osun State
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2012
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Abstract
This study analyses the impact of prepayment metering arrangement in the Redeemed Christian Church of God, Redemption Camp, Mowe, and Osogbo in Osun State, between March and December 2011. The prepaid meter was introduced mainly to achieve projected energy saving, particularly for electric lighting. Studieshave shown a reduction in electricity consumption which is achieved with an increase in the tariff price of the electricity. This study investigates the comparative advantage of the prepaid system over the conventional billing method using primary data for the prepaid meter and billing/ conventional meter in order to understand the preference of Nigerian households as a whole. The stratified sampling method was used to sample the different categories of households while data collected were analysed using descriptive and econometric methods. Also, the descriptive approach was used to shed more light on the nature of consumer responses. The econometric estimate was obtained using an Ordinary Least Square Multiple Regressions to analyse the energy consumption patterns of the consumer. 63 64 Enagyrechnology andInfrastructureforDeyelopment In the analysis, behaviours of the households were captured to examine the efficiency of electricity usage. The results of the analysis indicate that the adoption of the prepaid meter mechanism along with a high tariff structure reduced electricity consumption in the household The study suggests, one, the need for Nigeria to accept prepaid meter as a means of conserving energy, and, two, to take another look at the tariff structure of the electricity sector.