IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/14592.html
   My bibliography  Save this paper

Study of Retail Electricity Consumers’ Response and Perception Regarding Electricity Consumption

Author

Listed:
  • Mitra, Krishnendranath
  • Dutta, Goutam

Abstract

The price of retail electricity is restricted by regulations and have not increased at a same pace with the ever-growing demand of electricity. However, there exists a considerable amount of consumer surplus that can be harnessed by the electricity industry to improve the quality of service. In this paper we make an attempt to understand some characteristics of household electricity consumer demand. We performed an empirical, descriptive research and used inductive reasoning. Quantitative and qualitative primary data was collected through a questionnaire administered in Microsoft Excel format from 173 respondents. We propose a suitable present and future market segmentation of the retail electricity market based on several demographic and perceptual parameters respectively. We also analyze the demand price relationships and the price elasticities of demand for four appliances. We find that the willingness-to-pay is nearly five times the present average price of electricity. We also present perceptual distances for the future market related to adoption of dynamic prices and renewable energy by consumers.

Suggested Citation

  • Mitra, Krishnendranath & Dutta, Goutam, 2018. "Study of Retail Electricity Consumers’ Response and Perception Regarding Electricity Consumption," IIMA Working Papers WP 2018-10-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:14592
    as

    Download full text from publisher

    File URL: https://www.iima.ac.in/sites/default/files/rnpfiles/4299572522018-10-02.pdf
    File Function: English Version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ozbafli, Aygul & Jenkins, Glenn P., 2016. "Estimating the willingness to pay for reliable electricity supply: A choice experiment study," Energy Economics, Elsevier, vol. 56(C), pages 443-452.
    2. Dütschke, Elisabeth & Paetz, Alexandra-Gwyn, 2013. "Dynamic electricity pricing—Which programs do consumers prefer?," Energy Policy, Elsevier, vol. 59(C), pages 226-234.
    3. Tiwari, Piyush, 2000. "Architectural, Demographic, and Economic Causes of Electricity Consumption in Bombay," Journal of Policy Modeling, Elsevier, vol. 22(1), pages 81-98, January.
    4. Zhou, Shaojie & Teng, Fei, 2013. "Estimation of urban residential electricity demand in China using household survey data," Energy Policy, Elsevier, vol. 61(C), pages 394-402.
    5. Bose, Ranjan Kumar & Shukla, Megha, 1999. "Elasticities of electricity demand in India," Energy Policy, Elsevier, vol. 27(3), pages 137-146, March.
    6. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    7. Mak, Juliet C. & Chapman, Bruce R., 1993. "A survey of current real-time pricing programs," The Electricity Journal, Elsevier, vol. 6(7), pages 76-77.
    8. Frank A. Wolak, 2011. "Do Residential Customers Respond to Hourly Prices? Evidence from a Dynamic Pricing Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 83-87, May.
    9. Ahmad Faruqui, Sanem Sergici, and Lamine Akaba, 2014. "The Impact of Dynamic Pricing on Residential and Small Commercial and Industrial Usage: New Experimental Evidence from Connecticut," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    10. Goutam Dutta & Krishnendranath Mitra, 2017. "A literature review on dynamic pricing of electricity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1131-1145, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krishnendranath Mitra & Goutam Dutta, 2021. "A novel method of market segmentation and market study for dynamic pricing of retail electricity in India: an experimental approach in a university setup," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(2), pages 162-184, April.
    2. Goutam Dutta & Krishnendranath Mitra, 2017. "A literature review on dynamic pricing of electricity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1131-1145, October.
    3. Dutta, Goutam & Mitra, Krishnendranath, 2015. "Dynamic Pricing of Electricity: A Survey of Related Research," IIMA Working Papers WP2015-08-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Huntington, Hillard G. & Barrios, James J. & Arora, Vipin, 2019. "Review of key international demand elasticities for major industrializing economies," Energy Policy, Elsevier, vol. 133(C).
    5. Jia, Jun-Jun & Guo, Jin & Wei, Chu, 2021. "Elasticities of residential electricity demand in China under increasing-block pricing constraint: New estimation using household survey data," Energy Policy, Elsevier, vol. 156(C).
    6. Waite, Michael & Cohen, Elliot & Torbey, Henri & Piccirilli, Michael & Tian, Yu & Modi, Vijay, 2017. "Global trends in urban electricity demands for cooling and heating," Energy, Elsevier, vol. 127(C), pages 786-802.
    7. Nakai, Miwa & von Loessl, Victor & Wetzel, Heike, 2024. "Preferences for dynamic electricity tariffs: A comparison of households in Germany and Japan," Ecological Economics, Elsevier, vol. 223(C).
    8. Twerefou, Daniel Kwabena & Abeney, Jacob Opantu, 2020. "Efficiency of household electricity consumption in Ghana," Energy Policy, Elsevier, vol. 144(C).
    9. Jones, Rory V. & Fuertes, Alba & Lomas, Kevin J., 2015. "The socio-economic, dwelling and appliance related factors affecting electricity consumption in domestic buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 901-917.
    10. Najeeb, A. & Sridharan, S. & Rao, A.B. & Agnihotri, S.B. & Mishra, V., 2024. "Determinants of residential electricity consumption in South, East and South East Asia: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 198(C).
    11. Agrawal, Shalu & Harish, S.P. & Mahajan, Aseem & Thomas, Daniel & Urpelainen, Johannes, 2020. "Influence of improved supply on household electricity consumption - Evidence from rural India," Energy, Elsevier, vol. 211(C).
    12. Tiwari, Aviral Kumar & Menegaki, Angeliki N., 2019. "A time varying approach on the price elasticity of electricity in India during 1975–2013," Energy, Elsevier, vol. 183(C), pages 385-397.
    13. Ana Escoto Castillo & Landy Sánchez Peña, 2017. "Diffusion of Electricity Consumption Practices in Mexico," Social Sciences, MDPI, vol. 6(4), pages 1-24, November.
    14. Salari, Mahmoud & Javid, Roxana J., 2016. "Residential energy demand in the United States: Analysis using static and dynamic approaches," Energy Policy, Elsevier, vol. 98(C), pages 637-649.
    15. Riva, Fabio & Gardumi, Francesco & Tognollo, Annalisa & Colombo, Emanuela, 2019. "Soft-linking energy demand and optimisation models for local long-term electricity planning: An application to rural India," Energy, Elsevier, vol. 166(C), pages 32-46.
    16. Sandrine Mathy & Céline Guivarch, 2009. "Climate policies : what if emerging country baseline were not so optimistic? - a case study related to India," Working Papers halshs-00366276, HAL.
    17. Bertsch, Valentin & Harold, Jason & Fell, Harrison, 2019. "Consumer preferences for end-use specific curtailable electricity contracts on household appliances during peak load hours," Papers WP632, Economic and Social Research Institute (ESRI).
    18. Shigeru Matsumoto, 2015. "Electric Appliance Ownership and Usage: Application of Conditional Demand Analysis to Japanese Household Data," Working Papers e098, Tokyo Center for Economic Research.
    19. Patrick Ludwig & Christian Winzer, 2022. "Tariff Menus to Avoid Rebound Peaks: Results from a Discrete Choice Experiment with Swiss Customers," Energies, MDPI, vol. 15(17), pages 1-21, August.
    20. Pereira Uhr, Daniel de Abreu & Squarize Chagas, André Luis & Ziero Uhr, Júlia Gallego, 2019. "Estimation of elasticities for electricity demand in Brazilian households and policy implications," Energy Policy, Elsevier, vol. 129(C), pages 69-79.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:14592. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eciimin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.