Tariff Pricing Disparity and Household Electricity Prepaid Users’ Behaviour in Southwest, Nigeria
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Date
2022-06-30
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Christopher University Journal of Management and Social Sciences
Abstract
In Nigeria, previous studies attributed energy wastage to poor pricing resulting from low
electricity tariffs and awful human behaviour. By incorporating the practice theory
approach, this study examined the disparity in electricity tariff pricing and household
electricity prepaid users’ behaviour in Southwest Nigeria. The study employed a survey
method and gathered data from 286 respondents in purposively selected residential
areas in Osogbo, Nigeria. The study was analysed using two approaches: descriptive and
econometric. The study, however, showed that respondents were indifferent about the
tariff pricing scheme in Nigeria, which was attributed to respondents understanding the
concept of “Pay As You Go” pricing technique. The finding also revealed that the impact
of efficient price on electricity consumption is 3% greater than the price disparity
currently used in Nigeria and that consumers’ behaviour towards electricity wastage was
well-managed by prepaid metering. The findings of this study suggest the distribution of
well-programmed energy-efficient technologies that will capture price disparity, coupled
with well structured uniform tariff rate that will make prepaid metering relevant to
energy saving
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Keywords
Price Disparity, Household Electricity Consumption, Prepaid Metering, Practice Theory, Behaviour