Can a daily electricity bill unlock energy efficiency? Evidence from Texas

16 April 2018
By Dr. Derya Eryilmaz et al.

In a recent article in The Electricity Journal, NERA Consultant Dr. Derya Eryilmaz and Sam Gafford, a Manager at Direct Energy, conducted a study to understand energy efficiency implications of a daily billed energy service, commonly known as “prepaid” electricity. This product is used by a growing percentage of residential customers in the competitive Texas electricity market and differs from traditional monthly billing products by providing energy-users real-time electricity consumption data and the associated spending on their usage.  

The authors conducted an empirical analysis to estimate the energy efficiency implications of this product using customer data from Texas. Results of their analysis suggest that the service could save 9.6% of average daily energy consumption for an average customer. The authors conclude energy efficiency from prepaid energy products can extend to competitive marketplaces, and research should continue to explore the economic and energy usage implications of such products on the distributed energy economy.

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