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BILLING METHODS AND ELECTRICITY CONSUMPTION: A Tale of Two Nigerian Cities

BILLING METHODS AND ELECTRICITY CONSUMPTION: A Tale of Two Nigerian Cities

 

Abstract: Prepaid meters are a relatively new innovation adopted by the Power Holding Company of Nigeria as part of its power supply programme for energy saving. It is a mechanism that changes the attitudes of users towards electricity usage. Studies have shown that a prepaid meter reduces electricity consumption. This study investigates the comparative advantage of the prepaid system over the conventional billing method using a survey technique to find out the preference of the households in Nigeria as a whole. Empirical evidence from the study shows that the adoption of the prepaid meter mechanism will reduce the electricity consumption of users. The study suggests the introduction and acceptance of the prepaid meter as a measure for the conservation of
energy.

JEL classification: Q4, Q41, Q55, D1, L68

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