Abstract
A new alternative of electricity bill payment exists in Indonesia at present, namely prepaid systems. The system is intended to facilitate customers in electricity saving where the electricity utilization could be adjusted. In reality, however, post-paid electricity system utilization still receives great demand. As a consequence, it could not suppress electricity consumption. This research aims to learn factors inhibiting consumers to switch to prepaid electricity systems for their electricity consumption. A descriptive research carries out to answer the research problems. Sample consists of 100 people determined via a snowball sampling technique. Data collection is conducted using questionnaires and measured using Likert Scale of 1-5. Factory analysis is used as an analysis tool. The research results indicate that the main factor that becomes a barrier for electricity customers to switch to prepaid systems is habitual using factor. Switching cost factor, lack of prepaid system information, and relationship and reputation of post-paid products are the second, third, and fourth factors, respectively. Keywords: Switching barrier, electricity, prepaid, and household sector JEL Classifications: C42, D10, M00, O30 DOI: https://doi.org/10.32479/ijeep.10237
Highlights
Household group is currently the largest customers of electricity consumption in several countries especially since COVID-19 pandemic that causes all activities are conducted at home, such as school, office and other activities
Chimbo, (2020) expresses that there is a link between energy consumption, human capital development through communication and information technologies and a nation’s economic growth
Factors inhibiting the household customers to switch to prepaid electricity product/system were mainly due to the customers themselves who were reluctant to switch
Summary
Household group is currently the largest customers of electricity consumption in several countries especially since COVID-19 pandemic that causes all activities are conducted at home, such as school, office and other activities. Electricity demand for business, public, and household groups indicate an increase every year (Romadhoni and Akhmad, 2020). The importance of electricity for households affects increase in income (Bridge et al, 2016). It suggests that electricity plays an essential role in business, learning, and others to support family income. The significance of electricity energy for households’ livelihood and income as well as education has been studied by Leach, 1987; 1988; Matinga and Annegarn, 2013; Shahbaz et al, 2013; Phoumin and Kimura, 2019; Birol, 2007; Gebru and Bezu, 2014; Amaluddin, 2020. Elfaki et al (2020) state that there is a reciprocal relationship between electricity consumption, international trade openness, and economy in Sudan. Chimbo, (2020) expresses that there is a link between energy consumption, human capital development through communication and information technologies and a nation’s economic growth
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