دانلود رایگان مقاله انگلیسی مدیریت استراتژیک خدمات الکتریکی مسکونی در بازار رقابتی: دیدگاه تقاضا محور - Sage 2017

Abstract

This paper aims to empirically investigate consumers’ preference structures and their willingness to pay for key features of future residential electric power services that they have not experienced in the regulated market. Using a choice experiment based on conjoint survey and applying a mixed logit model, we quantitatively estimate individual utility functions for certain important attributes such as type of service-providing company, installation of smart meter devices, introduction of E-prosumer groups, relaxation of progressive electricity billing system, and share of renewable energy in the generation mix. The analysis reveals that households prefer installation of smart meter devices and introduction of E-prosumer groups, and are willing to pay 10,044 KRW/year (USD 8.97/year) and 5,222 KRW/year (USD 4.66/year), respectively, for these services. However, households dislike the participation of privately-owned companies under the competitive market structure, owing to the possibility of a rise in the electricity price.

Conclusion

Discussion and implication

Globally, the retail electricity industry has been gradually experiencing deregulation and liberalization drive for the last two decades. Recently, complete liberalization of entry into the retail electricity business and retail electricity rates were approved in Japan in order to create workable competition. In particular, this reform in the electric power industry was intended to bring vitality to the competition in the retail sector, and accelerate the spread of clean technologies for renewable energy and the microgeneration. As a result, this policy promoted competition and create value-added innovative services in the retail sector. In the wake of these changes, the Korean market is also outlining the terms and conditions for the new electric power services. Considering this situation, an accurate understanding of customers’ needs and preferences is required to provide service packages that could satisfy customers. Therefore, this paper explored future residential electric power services from consumers’ perspective, which directed towards the key attributes mentioned in the context of deregulation, liberalization, and green electricity. Specifically, we quantitatively estimated the consumers’ preference structure and their willingness to pay for key factors of electric power services by applying a choice experiment based on a conjoint survey. According to the results, electricity bills and the progressive electricity billing system were the two most important factors that influence decision making among consumers. Given that the progressive electricity billing system was one of the typical examples showing that government regulated electricity tariffs, the Korean government’s decision to lower households burden of high electricity bills, could be stated as the first step towards deregulating the electric power service market.