Understanding the Power Outage Cost of Residential Consumers in the City of Dhaka

摘要: The objective of this paper is to estimate the welfare cost associated with electric power interruption in residential sector city Dhaka. Using survey data collected through face-to-face interviews 400 customers Dhaka, study estimates a total loss Tk.24 mn (US$ 0.35 mn) per month as result massive outages during peak summer. results study, furthermore, indicate that depends on nature and extent outage customers' dependence electricity their daily lives. provides scientific evidence consumers Dhaka are willing pay extra, addition bill, ensure service reliability. However, explicitly detects lack customer confidence local provider. research useful indications for policy makers prospective future investors assess reliability worth household under different management alternatives. INTRODUCTION In inadequate supply one many problems faced by dwellers Massive outages, particularly summer, have become regular feature capital number years. On an average, typical experiences failure about three hours day. general deficit ranges between 450 500 MW day, which reaches up 1,800 summer (DESA, 2006). time increasing among households, widespread interruptions cause enormous amount high indoor temperatures disruptions activities. Bangladesh Power Development Board (BPDB) sole authority responsible generation transmission facilities throughout country. Electric Supply Authority (DESA) Company (DESCO), statutory organization Ministry Power, Energy Mineral Resources subsidiary DESA respectively, efficient distribution Greater District area-the largest single territory consuming around 50% sold Bangladesh. continues suffer from system losses, capacity, poor distribution, weak financial management, large payment arrears absence pricing recover operational costs. Despite millions dollars investment expenditure substantial administrative reforms over past 20 years, failed create any feeling customers. Generally, vast majority occur due capacity existing BPDB plants, inefficient system, recurrent national grid failures. Regardless specific interruption, development policies enhance requires knowledge economic costs they focus current understanding inconvenience incurred acute shortages. During period 2006 approximately upper-middle income class residents were interviewed using fully structured questionnaire. Contingent Valuation (CV), widely used non-market valuation method, was place monetary value caused unserved energy. reveals average Willingness To Pay (WTP) Tk.235 3.3) reliable supply, 20% monthly bill 0.58% income. sum, overall WTP across whole population (8% households), interrupted equals Tk. …