Publication - Policy Brief: Pre-paid Meters and Household Electricity Use Behaviours in Addis Ababa, Ethiopia
Policy Brief: Pre-paid Meters and Household Electricity Use Behaviours in Addis Ababa, Ethiopia
Energy and Economic Growth
Abebe D. Beyen, Marc Jeuland, Samuel Sebsibie , Sied Hassen, Alemu Mekonnen , Tensay Hadush Meles, Thomas Klug , Subhrendu K. Pattanayak
Does adoption of pre-paid meter reduce consumption of electricity? What is its impact on ownership of appliances, level of satisfaction, and cooking behaviour in Addis Ababa, the capital of Ethiopia? We provide answers using survey data collected from households in Addis Ababa.
Key messages and recommendations
- The Ethiopian Electric Utility (EEU) needs to continue expanding the use of pre-paid meters and educating customers about their advantages.
- Pre-paid meter customers have significantly lower electricity consumption compared to post-paid users, and greater satisfaction with utility service.
- This technology also has a positive, but modest and statistically insignificant impact on total appliance ownership.
- The impacts of pre-paid meters are heterogeneous across customers: those who are more educated, who have higher income, and who do not share meters tend to reduce electricity use more.
- The EEU needs to expand the dissemination of pre-paid meters and the replacement of existing post-paid meters.