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ABSTRACT
The research is aimed to analyze the factors
affecting the household electricity energy demand for every stratum of tariff category
which has different characteristics. The research was carried out in Medan City
by interviewing 383 (household) respondents.
The OLS was employed to analyze the data. The model is specified into
basic-model and developed-model. The basic
model consists of consumer’s income, WTP per KWh (kilowatt-hours), home
appliances index, number of household members, number of rooms, price of
other energy (fuel and gas), and ethnic variables. While, the developed-model
composed by variables occupation of household (head), household member’s
education, family activities, location, and PLN’s service quality.
The results showed that demand for electricity (by strata) in Medan
City are influenced by income (significant at 10 % level), willingness to pay per KWh (1 %),
home appliances index (5 %), number of household members (5 %), number
of rooms (5 %), price of fuel (5 %), and family activities (10 %). While
the demographic/household variables are only influenced for individual demand
by its strata. Household member’s education (5 %) and PLN’s service quality (10
%) variables are only influenced for stratum 2200 VA and 1300 VA respectively.
Ethnic (10 %), occupation of household (head) (5 %), and location (5 %)
variables are only significantly different for stratum 1300 VA, 2200 VA, and
450 VA respectively. The study found that electricity
at the moment is considered as a normal goods with inelastic in the demand
character.
The research suggest that PLN’s consumers in Medan City could
utilize the electricity more efficient with less in usage of
appliances due to limited power supplied by PT PLN. Moreover, PT PLN
should improve its management in some extents of electric power station, and favourable tariff to the customers.
Keywords : household electricity demand, OLS model, strata, WTP, Medan,
Indonesia.
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