A Research On The Willingness Of Households To Pay For An Enhanced Electricity Supply

The intermittent provision of energy in Ghana is one of its main issues.Uninterruptible power supply for the population has become challenging due to the unreliability of the power supply,which is mostly linked to supply-side restrictions such as inadequate energy infrastructure,low rates that are below cost recovery,and rising demand.Ghanaians are nowadays constantly calling for the government and service providers to enhance the provision of electricity services since households do experience monetary losses because of impromptu power cuts,to the extent that many of them might be willing to pay higher tariffs as a result of better delivery of services.Households’ willingness to pay(WTP)for increased access to electricity is assessed in this study.The primary objective of this study was to ascertain whether households are willing to pay for enhanced electricity supply in Ghana with the Kumasi Metropolis as the survey area.The study used the structural equation model and utilized survey research.Examining relevant theoretical and empirical literature was undertaken.Also,200 household heads were selected for the research and served as the study’s key respondents.Using the software programs SPSS and Smart PLS,the data were analysed,and the study evaluated the importance of the explanatory factors concerning willingness to pay(WTP),the study’s dependent variable.Findings from the study indicated that households had the willingness to pay for enhanced electricity but only if the enhanced electricity service had been provided.The study revealed that,among other factors,the WTP of consumers is influenced by households’ satisfaction,household consciousness and household attitude.The results revealed that household satisfaction has a direct and significant relationship with willingness to pay for enhanced electricity supply.Also,the results showed that household consciousness has a direct and significant relationship with willingness to pay for enhanced electricity supply.Again,the study discovered that household attitude has a direct and significant relationship with willingness to pay for enhanced electricity supply.Finally,the results suggested that household attitude strengthens the positive relationship between household satisfaction and willingness to pay but the relationship was not significant.On the other hand,the household attitude was also seen to strengthen the positive relationship between household consciousness and willingness to pay which was highly significant.The study recommended that the government should first concentrate on expanding the country’s electrical capacity before attempting to raise prices.Directions for further research on this topic were also proposed.