Consumer Perception of Domestic Electricity Prices

This study investigated (1) consumer perception about the level of electricity price, (2) the amount of household electricity consumption, and (3) consumer perception on electricity pricing system reform. For data collection, a national wide survey was conducted between November 22 and December 15, 2006. Excluding 233 cases, because of incomplete responses, data from 1767 households were analyzed. The major findings were as follows; More than 50% of the respondents consumed between 100-300kWh of electricity per month. Household size and income were significantly associated with electricity consumption. Approximately 50% of respondents perceived that electricity was being overcharged. Approximately 50% of the respondents positively evaluated the effects of the graduation pricing system. Households consuming more than 300kWh of electricity per month preferred a flat unit price. Based on these results, we suggest the implications to reforming the electricity pricing system.

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