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Reported Utility Service Satisfaction: The Case of Electricity in Transition Economies

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  • Antonio Carvalho

    (Centre for Energy Economics Research and Policy, Heriot-Watt University)

Abstract

Since the end of the Soviet Union, the power sector in the countries resulting from its disintegration has evolved from a context of central planning towards independent regulation. There is great heterogeneity in reform progress in transition countries, with consequences to service quality and prices in utilities and also the view the population has of such services. This paper conducts an overview of the modern power sector in transition economies and analyses drivers of reported household satisfaction with the quality of electricity services in 27 countries using cross-sectional survey data from the EBRD Life in Transition Survey II, in a context of improving regulatory and infrastructural frameworks, using an ordinal random effects model with a probit link function. Key drivers of reported satisfaction are the uses of electricity within the household and some characteristics such as age, economic conditions and general life satisfaction. However, there is no evidence of the effect of power sector reform on the opinion of households. This points that the general life experience in transition can be the key driver of how households feel about utilities, as reform brings conflicting effects that stem from increasing cost sustainability, competition, transparency and quality of the service.

Suggested Citation

  • Antonio Carvalho, 2015. "Reported Utility Service Satisfaction: The Case of Electricity in Transition Economies," CEERP Working Paper Series 001, Centre for Energy Economics Research and Policy, Heriot-Watt University, revised Nov 2015.
    • Handle: RePEc:hwc:wpaper:001
    as

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    References listed on IDEAS

    as
    1. Pollitt, Michael, 2009. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Utilities Policy, Elsevier, vol. 17(1), pages 13-23, March.
    2. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming the power sector in transition: Do institutions matter?," Energy Economics, Elsevier, vol. 34(5), pages 1675-1682.
    3. Gabor Rekettye & Jozsef Pinter, 2006. "Customer satisfaction and price acceptance in the case of electricity supply," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 1(3), pages 220-230.
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    More about this item

    Keywords

    Electricity; Transition Economies; Household Satisfaction; Ordinal Probit;
    All these keywords.

    JEL classification:

    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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