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Study on the impact of electricity tariff increases on consumption behaviour and overall wellbeing among urban households in Ethiopia

Tesfamichael, M; Mulugetta, Y; Beyene, A; Sebsibie, S; (2021) Study on the impact of electricity tariff increases on consumption behaviour and overall wellbeing among urban households in Ethiopia. (EEG Working Paper ). Energy and Economic Growth: Applied Research Programme: UK.

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Abstract

Although affordability is important, people do not need to be money poor to experience energy deprivation. This paper examines how an electricity tariff increase affects household energy consumption by situating the price change within the broader context of energy services provision in Ethiopia. We place households’ lived experience in interaction with the institutional and infrastructural dynamics that constitute the energy sector in Addis Ababa to observe how the price increase intersects with service provision. Since the tariff increase was implemented, households have changed their daily routines to control cost. Our findings show that energy consumption behaviour is also shaped by service-related inadequacies (unreliable supply and frequent power outages). However, families coping capacity (to the tariff increase and power supply shortfalls) is undermined by an energy market that is rife with information asymmetries and uncertainties. Thus, although socioeconomic factors underpin the energy insecurity households experience and inadequate supply appears to heighten their vulnerability. The paper argues that while the price change has an overall effect on consumption, its impact needs to be seen within the context of its systemic interaction with the broader energy governance and service delivery challenges.

Type: Working / discussion paper
Title: Study on the impact of electricity tariff increases on consumption behaviour and overall wellbeing among urban households in Ethiopia
Publisher version: https://energyeconomicgrowth.org/publication/eeg-w...
Language: English
Additional information: This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > STEaPP
URI: https://discovery.ucl.ac.uk/id/eprint/10133100
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