Date Added: Feb 2011
In this paper the authors look at the role of pre-payment (in the context of prepayment metering) for household electricity consumption. Using a matching approach, they find that households paying their electricity upfront tend to consume no less electricity than households paying ex post. This is despite facing a higher tariff and higher transaction costs. In the second part of the paper, they explore to what extent this finding can be linked to an increase in payment flexibility under a pre-payment regime.