Payment Matters? - An Exploratory Study into the Pre-Payment Electricity Metering
AbstractIn this paper we look at the role of pre-payment (in the context of prepayment metering) for household electricity consumption. Using a matching approach, we find that households paying their electricity up-front tend to consume no less electricity than households paying ex post. This is despite facing a higher tariff and higher transaction costs. In the second part of the paper, we explore to what extent this finding can be linked to an increase in payment flexibility under a pre-payment regime. Using data from the main electricity supplier in Northern Ireland (NIE Energy), we explore how people top-up their pre-payment meters and whether there is a link between people's top-up behaviour and their electricity consumption.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 1124.
Date of creation: 10 Feb 2011
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Web page: http://www.econ.cam.ac.uk/index.htm
Pre-payment Metering; Top-Up Behaviour; Demand Management; Pain of Paying.;
Find related papers by JEL classification:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
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