Enhanced salience of nonlinear pricing and energy conservation
This project considers whether a new app can help customers better understand utilities’ nonlinear pricing systems in Vietnam.
Vietnam’s state-owned utility, EVN, uses a nonlinear pricing system, imposing higher rates as consumption rises. However, this system is not easily comprehensible to customers, who have complained that they do not understand why their bills are so high. Policymakers have recently debated whether electric utility companies should have a flat rate instead of increasing block tariffs.
This project examines the extent to which an app recently launched by EVN Hanoi improves customers’ comprehension of the pricing system. Many customers have smart meters, so EVN can now share frequent consumption data with them, giving them immediate feedback to help them in their conservation efforts. If successful, the app will become available to all households in Vietnam.
