Sharing is Costly? Experimental Evidence on the Effects of Shared Metering on Energy Conservation in Ghana

In Ghana, a basic requirement for getting connected to electricity is access to an electric meter. However, delays in the acquisition of the meters force many households to “subconnect” electricity from nearby connected households. This creates the issue of “shared metering” and it is common among residents of multi-family houses.  The problem associated with this practice is that shared metering creates “agency problem” thereby reducing the incentives of households to conserve electricity. Using a randomized controlled experiment, the objective of the project is to provide evidence on the effects of meter sharing on electricity conservation and household welfare. Further to examine, the effects of meter sharing on non-payment of electricity bills among post-paid customers. The project will be done in close collaboration with the Electricity Company of Ghana (ECG) and the Energy Commission (EC). It also complements USAID’s project on energy efficiency of commercial consumers in Ghana. Evidence from this research will provide first-hand empirical evidence on the presence of “morale hazard” when households share a common electricity meter and its effects on households’ energy conservation behaviour. The study will also offer evidence on how the removal of electricity access constraints can engender energy savings and improve bill payments.