Enhanced salience of nonlinear pricing and energy conservation
This policy brief considers how a utility’s redesigned mobile app interface – aimed at enhancing comprehension of nonlinear electricity pricing – affects consumer energy conservation in Vietnam.
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Ta Policy Brief September 2024.pdf
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- Nonlinear pricing systems, widely adopted by various utilities, particularly in low- and middle-income countries, are structured to promote energy conservation by imposing higher rates as consumption rises. However, many consumers are not fully informed about the timing and impact of these pricing tiers on their bills, leading to missed opportunities for energy savings and more efficient usage.
- This policy brief considers findings from a large-scale randomised controlled trial in Hanoi, Vietnam, which questions how a utility’s redesigned mobile app interface – aimed at enhancing comprehension of nonlinear electricity pricing – affects consumer energy conservation.
- Findings suggest that leveraging digital data from smart meters and customer apps enables precise, high-frequency tracking of household energy consumption at a minimal cost.
- The app-based intervention is low-cost, scalable, and replicable, making it a practical tool for effective engagement in conservation efforts.