P: ISSN No. 2394-0344 RNI No.  UPBIL/2016/67980 VOL.- VIII , ISSUE- XI February  - 2024
E: ISSN No. 2455-0817 Remarking An Analisation

Comprehensive Analysis of Customer Satisfaction and Service Quality in Residential Electricity Supply in Lucknow

Paper Id :  18547   Submission Date :  2024-02-09   Acceptance Date :  2024-02-13   Publication Date :  2024-02-17
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DOI:10.5281/zenodo.10663116
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Ranjana Kothari
Professor
Amity Business School
Amity University
Gurgaon,Haryana, India
Mohd Shahab Alam
Research Scholar
Amity Business School
Amity University
Gurgaon, Haryana, India
Abstract

The research explores residential electricity consumer satisfaction and service quality in Lucknow, Uttar Pradesh. Leveraging diverse literature, a comprehensive survey methodology was employed, analysing 277 respondents' data. Findings indicate correlations between education, income, and appliance usage. The introduction of pre-paid meters shows potential for expense management, yet uncertainties persist. Recommendations include broadening the research scope and conducting longitudinal studies. Limitations include sample representativeness and potential survey bias. This study provides valuable insights for policymakers and utility providers aiming to enhance service quality and customer satisfaction in residential electricity supply.

Keywords Customer, Satisfaction, Service, Quality, Electricity, Supply in Lucknow.
Introduction

The electricity industry serves as the backbone of modern society, powering homes, businesses, and industries. Within this sector, residential consumers constitute a significant portion of electricity demand, relying on reliable and efficient services. Uttar Pradesh witnesses a per capita electricity consumption of 278kWh[1] among residential consumers, reflecting the growing need for a dependable electricity supply. Historically, power distribution in Uttar Pradesh has been under state-owned monopolies, with entities like the Lucknow Electricity Supply Administration (LESA) managing urban areas like Lucknow. Despite widespread access, concerns regarding service quality persist, leading to recent initiatives aimed at improvement. Discoms have outsourced direct-to-customer services such as billing and meter management to enhance operational efficiency and service delivery.

Objective of study

Conduct a comprehensive analysis of customer satisfaction and service quality in residential electricity supply in Lucknow, Uttar Pradesh, focusing on factors such as education, income, appliance usage, and the introduction of pre-paid meters.

1. Investigate the dynamics of residential electricity consumption patterns and satisfaction levels in Lucknow, Uttar Pradesh, considering factors like education, income, and appliance usage.

2. Analyze the impact of pre-paid meters on expense management and customer satisfaction, addressing uncertainties and potential benefits.

3. Explore correlations between education, income, and appliance usage, offering insights into consumer behavior and preferences.

4. Provide recommendations for policymakers and utility providers to enhance service quality and customer satisfaction, including broader research scopes and longitudinal studies.

5. Address limitations such as sample representativeness and potential survey bias, offering suggestions for future research methodologies and data collection techniques.

Review of Literature

The literature surveyed for this paper encompasses diverse facets of customer satisfaction, service quality, and residential electricity supply. These reviewed research papers serve as valuable references for investigations into customer satisfaction and service quality within the residential sector. In this literature review, we leverage a carefully chosen selection of research papers to offer insights into a comprehensive analysis of customer satisfaction and service quality in residential electricity supply specific to the context of Lucknow.

"Assessing Residential Customer Satisfaction with the Quality of Electricity Supply" by J.M. Koopman, H.J. Heijmans, and P.R. Waeijen (Energy Policy, 2009) examines factors influencing residential customer satisfaction with electricity supply quality. "A study of service quality, customer satisfaction and loyalty in Indian commercial banking" by Ravindra Chitturi and K. S. Raju (International Journal of Information Management, 2009) offers insights that can be adapted to the electricity sector. "Customer satisfaction in the electric utility industry: the service profit chain" by George R. Franke and Peter R. Earl (Energy Policy, 2017) explores the relationship between customer satisfaction and profitability in the electric utility industry. "Assessment of Service Quality in Indian Residential Electricity Distribution" by Gireesh B. Pradhan and Siddhartha K. Khaitan (International Journal of Energy Sector Management, 2017) focuses on assessing service quality in residential electricity distribution. "Customer satisfaction with power supply in the Indian state of Kerala" by Jisha, M. S., and Kumar, P. S. (Energy Policy, 2018) provides insights into customer satisfaction with power supply in an Indian state, offering relevant findings for Lucknow. "Service quality and customer satisfaction in the South African residential electricity sector" by Ntombizandile B. Mtimkulu and Alina I. Baloyi (Renewable and Sustainable Energy Reviews, 2021) investigates service quality and customer satisfaction in the South African context, potentially providing comparative insights. "Assessment of electricity service quality: A customer survey of a public distribution company in India" by Alok Kumar Prasad and Debasis Mishra (Energy Policy, 2020) offers insights into electricity service quality assessment through a customer survey. "Evaluating Customer Satisfaction in the Indian Residential Electricity Sector" by Ravi S. Sharma, S.R. Chakravarthy, and S.V. Raghavendran (Procedia Engineering, 2014) explores the evaluation of customer satisfaction in the Indian residential electricity sector, potentially applicable to Lucknow. "Smart Grid and Residential Customer Satisfaction: A Theoretical Framework" by Shanmukha Sree and Gopal Gampa (Procedia Computer Science, 2015) provides a theoretical framework for understanding the impact of smart grids on residential customer satisfaction. Lastly, "Impact of Smart Grid Implementation on Residential Electricity Customers: Evidence from a U.S. Pilot program" by Matt Woelfel and Gerrit Hoogenboom (Energy Policy, 2019) investigates the impact of smart grid implementation on residential electricity customers and offers evidence from a U.S. pilot program. These papers collectively contribute to the existing knowledge and provide a foundation for understanding customer satisfaction and service quality in residential electricity supply, both in a global and regional context.

Identifying gaps in the existing literature is crucial for defining the scope of your research. These gaps could include limited research in the context of Lucknow, specific service quality parameters not adequately addressed, or the absence of studies considering recent technological advancements in electricity supply.

Methodology

The methodology employed for this research involved a comprehensive primary survey aimed at elucidating the factors influencing electricity customer satisfaction and service quality in Uttar Pradesh, with a specific focus on the urban centre of Lucknow.

Survey Design: The survey design for studying consumer satisfaction in Lucknow is robust and tailored. It employs a structured questionnaire across four categories, with a strategic sample size. The cross-sectional approach provides efficiency but has limitations regarding causality and bias. Nonetheless, it offers valuable insights into residential electricity customer satisfaction patterns.

Sampling Strategy: Lucknow, Uttar Pradesh's capital, is the study's location, governed by the local municipal corporation. It spans 2,528 sq km with a 2022 population of 5,317,786, comprising 2,774,240 males and 2,543,546 females. Situated at 26.50 N and 80.50 E, Lucknow experiences hot summers and cold winters. Electricity distribution is overseen by Lucknow Electricity Supply Administration (LESA), managed by Madhyanchal Vidyut Vitran Nigam Limited (MVVNL) under Uttar Pradesh Power Corporation Limited (UPPCL).

The study on electricity price elasticity in Lucknow employed random and stratified sampling techniques. Random sampling ensured unbiased selection from various neighbourhoods, while stratified sampling divided the population by income levels for representative sampling. This method aimed to mitigate biases and accurately reflect Lucknow's demographic diversity, enhancing the findings' generalizability.

Sampling

Sample Size Calculation: The research employed rigorous sample size calculation techniques for statistical significance. Factors like population size, margin of error, confidence level, and standard deviation were considered.With a 90% confidence level, the calculated sample size is 269.

Analysis

Our dataset, sourced from Lucknow, the capital of Uttar Pradesh, India, underscores its diverse population of 3 million and 98% household electricity penetration. However, challenges such as outages and affordability persist among low-income households.

The study investigated the effects of tariff adjustments on residential electricity usage. Through a cross-sectional survey, data were gathered from 277 Lucknow residents using a structured 34-question questionnaire. The diverse sample was selected using random and stratified techniques to ensure broad demographic representation.

The study surveyed 277 individuals, predominantly male (78.70%), from diverse age groups. The age distribution was as follows: 10% were under 18, 84% were between 19-30, 6% were between 31-50, and 1% were between 51-90.


The correlation analysis between education and income indicates that higher education levels are associated with higher income levels, as demonstrated by our study's correlation coefficient of 29%. However, despite this positive relationship, the correlation value is relatively low. The observations illustrating this correlation are presented in the chart below.

Prepaid Meter:

The utilisation of the pre-paid electricity meter is pivotal in evaluating customer satisfaction regarding electricity services. Respondents were queried regarding their familiarity with the pre-paid electricity meter, with 54% indicating awareness of this device. The majority of respondents are acquainted with the meter, with most believing it will aid in managing electricity expenses. Specifically, 46% perceive it as enhancing control over electricity expenditures, 41% harbour uncertainties about its effectiveness, and 12% do not view it as an efficient means of managing electricity costs. Additionally, 46% express readiness to install such a meter, while 51% are opposed to having it in their homes.

Billing

Respondents indicated their preference for various billing frequencies. A majority (80%) are open to receiving monthly bills, constituting nearly 80% of the sample. Following the introduction of the pre-paid electricity meter, we aimed to assess if this tool has bolstered respondents' trust in the electricity company. The responses' distribution appears uneven and uncertain, with most respondents holding either a positive or uncertain perspective regarding the tool's post-implementation impact. The final segment of the customer satisfaction survey addresses expectations concerning rectifying incorrect and delayed billing issues. It seems that the pre-paid electricity tool can effectively address these issues in most instances, as demonstrated by the positive feedback from over 50% of respondents.

Energy Efficiency Measures

A correlation matrix was constructed among variables like Frequency of Energy-Efficient Appliance Use (FEAU), Satisfaction with Major Appliance Energy Efficiency (SMAEE), etc. Notably, there is a 52% correlation between SMAEE and FEAU, while FEAU and Household Capacity for Investment in Energy-Efficient Technologies (HCIET) show a 28% correlation.

To improve clarity in the matrix, we use green to highlight stronger positive relationships and red to signify strong negative relationships. Please refer to the matrix for visual representation.

Conclusion

The primary survey in Lucknow, Uttar Pradesh, delved into factors impacting electricity customer satisfaction and service quality. Despite limitations, the robust survey design provided insights into challenges such as outages and affordability, particularly among low-income households. Findings revealed correlations between education, income, and appliance usage. The introduction of pre-paid meters showed potential for expense management, yet uncertainties persisted. Recommendations include broadening research scope, conducting longitudinal studies, and combining qualitative and quantitative methods. Insights could inform policies and utility providers, prompting targeted interventions and education campaigns to enhance awareness of energy-efficient practices and pre-paid meters' benefits.

Limitation of the Study Data Collection Constraints: The dataset utilised in this research is derived from 399 residential consumers in Lucknow, Uttar Pradesh. While this sample provides valuable insights, it may not fully represent the diversity of households and consumption patterns in the region. The sample size could be considered relatively small when compared to the population of Lucknow, which might introduce sampling bias.
Generalization Limitations: Findings and conclusions from this research might be applicable primarily to Lucknow, and generalizing them to other regions or countries could be challenging due to varying economic, social, and cultural factors.
Survey Bias: The use of self-reported data from surveys can introduce response bias, as respondents may not always provide accurate or comprehensive information.
References

1. Koopman, J.M., Heijmans, H.J., &Waeijen, P.R. (2009). "Assessing Residential Customer Satisfaction with the Quality of Electricity Supply." Energy Policy.

2. Chitturi, R., & Raju, K.S. (2009). "A study of service quality, customer satisfaction and loyalty in Indian commercial banking." International Journal of Information Management.

3. Franke, G.R., & Earl, P.R. (2017). "Customer satisfaction in the electric utility industry: the service profit chain." Energy Policy.

4. Pradhan, G.B., & Khaitan, S.K. (2017). "Assessment of Service Quality in Indian Residential Electricity Distribution." International Journal of Energy Sector Management.

5. Jisha, M.S., & Kumar, P.S. (2018). "Customer satisfaction with power supply in the Indian state of Kerala." Energy Policy.

6. Mtimkulu, N.B., & Baloyi, A.I. (2021). "Service quality and customer satisfaction in the South African residential electricity sector." Renewable and Sustainable Energy Reviews.

7. Prasad, A.K., & Mishra, D. (2020). "Assessment of electricity service quality: A customer survey of a public distribution company in India." Energy Policy.

8. Sharma, R.S., Chakravarthy, S.R., & Raghavendran, S.V. (2014). "Evaluating Customer Satisfaction in the Indian Residential Electricity Sector." Procedia Engineering.

9. Sree, S., &Gampa, G. (2015). "Smart Grid and Residential Customer Satisfaction: A Theoretical Framework." Procedia Computer Science.

10. Woelfel, M., & Hoogenboom, G. (2019). "Impact of Smart Grid Implementation on Residential Electricity Customers: Evidence from a U.S. Pilot program." Energy Policy.

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Endnote
1. 19th Electric Power Survey of India (2018-19)