Households’ Energy Conservation Behaviour, Tariff Reform, and Energy Poverty in Addis Ababa

Before 2018, the electricity tariff in Ethiopia was one of the lowest in the world contributing to low revenues for power suppliers and a reduction in the quality of electricity services provided to customers. The Ethiopian government revised this tariff in four phases from 2018 to 2021. This study aims to analyze the impacts of these tariff reforms on household energy consumption and energy poverty in Addis Ababa, using three-period rich panel data sets spanning the period 2016 to 2024. Moreover, the study will examine how household knowledge of tariffs and electricity costs affects electricity consumption and energy poverty. The survey data will be supplemented by seven years of administrative data. The study will employ Event Study regression to examine the impact of the electricity price reform on households’ electricity consumption. Furthermore, the study will use the quasi-maximum likelihood estimation (QMLE) model to investigate households' energy choices following electricity price reform and the continuous rise in alternative energy prices. The findings of this study will provide valuable inputs to decision makers such as the Ethiopian Electric Utility (EEU) and Ethiopian Electric Power (EEP) which are struggling to cover their costs and enhance the quality of electricity supply.