Consumption and Non-Payment Responses to Retail Electricity Prices in India

Consumption and Non-Payment Responses to Retail Electricity Prices in India

🎙 Shefali Khanna 👥 1K 📅 January 15, 2026 ⏱ 51 min 👁 2 📄 original study 🧭 2026-08-16
Available in: English (current) Français

Keywords

price elasticitynon-paymentelectricity demandsubsidiesIndia

Summary

This webinar presents a study on how residential, commercial, and industrial electricity consumers in Delhi, India respond to retail price changes, focusing on both consumption and bill payment behavior. Using billing data from a private utility covering 1.5 million customers from 2015 to 2019, the authors exploit natural experiments from subsidy notches and billing cycle adjustments. They find that in the short run, residential demand is very inelastic to large price shocks, but non-payment increases significantly, suggesting that customers use arrears to absorb price increases. In the long run, they estimate larger elasticities, ranging from -0.6 for the poorest informal settlement customers to -1.99 for industrial customers. Non-payment also increases in the long run, particularly among the poorest customers, with arrears more than doubling in response to a doubling of the average price. The findings highlight the trade-offs of reducing retail subsidies: while it could improve utility finances, it may exacerbate non-payment among vulnerable populations.

155 words

Critical Evaluation

Value of the Information & Strength of the Argument

The presentation provides valuable empirical evidence on price elasticities and non-payment responses in a developing country context, which is scarce in the literature. The use of a large administrative dataset and quasi-experimental methods strengthens the credibility of the estimates. The argumentation is well-structured, starting with the policy problem, describing the data and methods, and then presenting results with clear interpretations. The authors also discuss potential mechanisms, such as the role of non-payment in dampening consumption responses, and consider policy implications.

Scientific Rigor, Source Quality, Title Accuracy

The study is methodologically rigorous, using regression discontinuity and exploiting billing cycle variations for identification. The data source is a private utility in Delhi, and the authors also conducted a household survey to supplement administrative data. The presentation does not cite external sources, but the methodology and results are consistent with existing literature on energy economics. The title accurately reflects the content, and the presentation is clear and well-organized.

164 words

Title / Content Match

The title accurately reflects the content, which focuses on estimating consumption and non-payment responses to retail electricity prices in India.

Quality & Reliability

8/10

The study uses a large administrative dataset (79 million bills) and rigorous econometric methods (regression discontinuity, panel variation). The speaker is a researcher at Imperial College London with a PhD from Harvard. The presentation is detailed and transparent about limitations.

Key Moments

Contribution & Novelties

This research provides novel empirical evidence on price elasticities and non-payment responses in a developing country context, using a large administrative dataset and quasi-experimental methods. It highlights the importance of considering non-payment when designing retail pricing reforms.

Pour aller plus loin :

70 words

Radar Profile

The radar profile shows high scores in quantity of information and technical level, reflecting the detailed data and econometric methods. Quality and reliability are also high, but slightly lower due to the lack of external citations. The overall profile indicates a rigorous, data-driven presentation.

Reliability 8/10