A Preliminary Study on Electricity Affordability and Willingness to Pay (WTP) on Maximum Demand (MD) Charge Among Residential Electricity Customers in Malaysia
Zainudin W.N.R.A.1, Wan Abdullah W.M.Z.2, Ramli N.A.3
1Zainudin W.N.R.A, Faculty of Science and Technology, Universiti Sains Islam Malaysia, Nilai, Malaysia.
2Wan Abdullah W.M.Z, School of Maritime Business and Management Universiti Malaysia Terengganu, Kuala Terengganu, Malaysia.
3Ramli N.A, Faculty of Science and Technology, Universiti Sains Islam Malaysia, Nilai, Malaysia.
Manuscript received on 13 December 2018 | Revised Manuscript received on 25 December 2018 | Manuscript Published on 24 January 2019 | PP: 33-37 | Volume-7 Issue-4S2 December 2018 | Retrieval Number: ES2085017519/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Implementation of maximum demand charge is a possible solution to better reflect the cost of generating and delivering electricity. However, this implementation leads to additional charge in the electricity bill and would effect on the electricity affordability among the residential customers. As a preliminary study on the issue related to electricity affordability and willingness to pay for maximum demand charge, this paper uses survey data collected from 411 residential electricity customers in Malaysia and descriptive analysis. Findings from this study indicates most of the respondents do not face electricity unaffordability problem and seem to be willing to pay for the maximum demand charge.
Keywords: Maximum Demand Charge, Willingness to Pay, Electricity Affordability.
Scope of the Article: Residential, Commercial