A preliminary study on electricity affordability and willingness to pay (WTP) on maximum demand (MD) charge among residential electricity customers in Malaysia

Implementation of maximum demand charge is a possible solution to better reflect the cost of generating and delivering electricity. However, this implementation leads to additional charge in the electricity bill and would effect on the electricity affordability among the residential customers. As a preliminary study on the issue related to electricity affordability and willingness to pay for maximum demand charge, this paper uses survey data collected from 411 residential electricity customers in Malaysia and descriptive analysis. Findings from this study indicates most of the respondents do not face electricity unaffordability problem and seem to be willing to pay for the maximum demand charge. � BEIESP.