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Payment Behaviour of Electricity Consumers: Evidence from the Greater Accra Region of Ghana

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  • Mohammed Aminu Sualihu

    (Mohammed Aminu Sualihu, School of Business and Economics, Universiti Brunei Darussalam, Jalan Tungku Link, Gadong BE 1410, Negara Brunei Darussalam. E-mail: mohammedaminusualihu@yahoo.com)

  • M. Arifur Rahman

    (M. Arifur Rahman, PhD, School of Business and Economics, Universiti Brunei Darussalam, Jalan Tungku Link, Gadong BE 1410, Negara Brunei Darussalam. E-mail: arifur.rahman@ubd.edu.bn)

Abstract

Electricity companies are typically businesses with significant credit sales. However, timely payment of bills on the part of customers, which is supposedly the most reliable source of cash flows for these utilities, has been generally very poor especially in the context of much of the developing world. The aim of the study is to identify a set of organizational and behavioural factors that influences the bill payment behaviour of customers of the Electricity Company of Ghana. Based on a survey of households in the Greater Accra Region of Ghana, our empirical analysis suggests that electricity utilities must work towards reducing the transaction time of customers at the bill collection centres and improving upon the quality of service and customer satisfaction in order to curtail customer bill payment period. These findings are robust to the influence of potentially extreme data points in our sample. We provide detailed discussion and policy implications of our findings.

Suggested Citation

  • Mohammed Aminu Sualihu & M. Arifur Rahman, 2014. "Payment Behaviour of Electricity Consumers: Evidence from the Greater Accra Region of Ghana," Global Business Review, International Management Institute, vol. 15(3), pages 477-492, September.
    • Handle: RePEc:sae:globus:v:15:y:2014:i:3:p:477-492
    DOI: 10.1177/0972150914535135
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    References listed on IDEAS

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