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Empowered? Examining self-disconnection in a postal survey of electricity prepayment meter consumers in New Zealand

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  • O'Sullivan, Kimberley C.
  • Howden-Chapman, Philippa L.
  • Fougere, Geoffrey M.
  • Hales, Simon
  • Stanley, James
Abstract
Prepayment metering is an electricity payment method often used by low-income consumers. Fuel poverty is an important public health problem in New Zealand, and is likely to be a particular problem for those using prepayment metering. This paper details a nationwide postal survey of consumers undertaken with the support of three major electricity retailers, which investigated the advantages and disadvantages of using prepayment metering from a consumer perspective. The study surveyed a total pool of 359 randomly selected consumers across the three companies, a response rate of 48%. The study found that while almost all respondents felt the benefits of using prepayment outweighed the risks of running out of credit or ‘self-disconnection’, 53% of respondents experienced self-disconnection in the past year. Of concern, over a third of respondents experiencing self-disconnection were without electricity for more than 12h. The frequency of self-disconnection was also high, with 17% of those disconnecting reporting six or more events in the past year. Government intervention could reduce the risks and disadvantages involved with using prepayment metering, which could then support initiatives aimed at reducing fuel poverty.

Suggested Citation

  • O'Sullivan, Kimberley C. & Howden-Chapman, Philippa L. & Fougere, Geoffrey M. & Hales, Simon & Stanley, James, 2013. "Empowered? Examining self-disconnection in a postal survey of electricity prepayment meter consumers in New Zealand," Energy Policy, Elsevier, vol. 52(C), pages 277-287.
    • Handle: RePEc:eee:enepol:v:52:y:2013:i:c:p:277-287
    DOI: 10.1016/j.enpol.2012.09.020
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    3. Oseni, Musiliu O., 2015. "Assessing the consumers’ willingness to adopt a prepayment metering system in Nigeria," Energy Policy, Elsevier, vol. 86(C), pages 154-165.
    4. Wong, Jason Chun Yu & Blankenship, Brian & Urpelainen, Johannes & Balani, Kanika & Ganesan, Karthik & Bharadwaj, Kapardhi, 2022. "Understanding electricity billing preferences in rural and urban India: Evidence from a conjoint experiment," Energy Economics, Elsevier, vol. 106(C).
    5. Telles Esteves, Gheisa Roberta & Cyrino Oliveira, Fernando Luiz & Antunes, Carlos Henggeler & Souza, Reinaldo Castro, 2016. "An overview of electricity prepayment experiences and the Brazilian new regulatory framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 704-722.
    6. Rocha, Marta & Baddeley, Michelle & Pollitt, Michael & Weeks, Melvyn, 2019. "Addressing self-disconnection among prepayment energy consumers: A behavioural approach," Energy Economics, Elsevier, vol. 81(C), pages 273-286.
    7. O'Sullivan, Kimberley C. & Stanley, James & Fougere, Geoffrey & Howden-Chapman, Philippa, 2016. "Heating practices and self-disconnection among electricity prepayment meter consumers in New Zealand: A follow-up survey," Utilities Policy, Elsevier, vol. 41(C), pages 139-147.

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