Abstract
Monthly bills for services such as electricity often go unpaid in developing countries. Prepaid meters offer a potential technological solution. In Cape Town, South Africa, over 4,000 residential customers on monthly billing were switched to prepaid metering, with random variation in the timing of the switch. In response, electricity use falls by 14 percent, driven at least in part by an increase in marginal price sensitivity. The decrease in revenue to the municipal electric utility is more than offset by lower revenue recovery costs. Switching poorer and more in-debt customers generates the greatest net revenue gains to the utility. (JEL L94, L98, O13, Q41, Q48)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
