Tariff Pricing Disparity and Household Electricity Prepaid Users’ Behavior in Southwest, Nigeria

Abstract

In Nigeria, previous studies attributed energy wastage to poor pricing resulting from low electricity tariffs and awful human behavior. By incorporating the practice theory approach, this study examined the disparity in electricity tariff pricing and household electricity prepaid users’ behavior in Southwest Nigeria. The study employed a survey method and gathered data from 286 respondents in purposively selected residential areas in Oshogbo, Nigeria. The study was analyzed 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’ behavior 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.