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Consumption of electricity in Tanzania is considered as an essential service by households. It is one of sources of energy for domestic activities. The purpose of this research was to examine factors influencing household consumers` willingness to pay (WTP) for utility services – A Case of TANESCO Customers in Mwanza city. The objectives that guided the study were: to determine consumers` awareness of the need to pay for utility (electricity) services provided by TANESCO in Mwanza; to assess defaulting household consumers` WTP for electricity services; to establish factors affecting household consumers` WTP for electricity service; and, to determine the relationship between household consumers` WTP and socio- economic factors. The research employed both quantitative and qualitative approaches to study these factors. The study had a population of 10,040 household consumers` constituting factors influencing willingness to pay for utility services; out of this population a sample size of 251 household consumers` in Mwanza was selected. In addition, in depth interview were conducted with management and individual household consumers. Data were analyzed using SPSS package and content analysis. The main findings were that majority of household consumers are not made aware of their obligation to pay utility services provided by TANESCO; and, due to absence of this education, households are reluctant to pay for electricity usage on time. The study also revealed that, although, most of monthly electricity bills are less than Tshs.10,000 most household consumers` pay after receiving a warning bill notice. Those household in low income bracket and low education tended to default more. The main factors found to influence WTP included monthly income, unreliability of regular electricity supply and perception of electricity as a free public service and large size families. The study recommends that TANESCO should develop campaign programs to educate the public about the value of electricity and concept of “User pays”. TANESCO should review its billing policy to reflect socio-economic factors that are contributing low WTP. The study suggests areas for further research and these include extensive survey on WTP in other urban areas of Tanzania, prior to generalization. Further research is need on consumer`s attitude on electricity usage and poor understanding by management of TANESCO household consumer needs |
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