Nepal Compact - Willingness to Pay for Electricity

Summary: The main purpose of this survey was to: (1) assess the potential economic benefit of the incremental value of utilizing additional energy at a lower cost per unit of service in place of alternative energy sources such as: generators, candles, kerosene lamps, and batteries, for lighting and household appliances, and for commercial/industrial purposes; (2) Assess the willingness of households and businesses to pay more than they are currently paying for a supply of electrical energy with fewer scheduled and unscheduled outages and more stable voltage. The survey was designed to calculate for each targeted group its WTP for improved quality of power supply with regards to availability; range of fluctuation of quality; predictability of power supply interruption. The findings from the survey are expected to provide decision makers with valuable indications concerning the scope for possible tariff adjustments linked to improved quality of service. The survey also aimed to provide an estimate of the power demand curve of consumers as a key input for the calculation of consumers' surplus linked to power supply and improved quality of supply.