Degree

Master of Business Administration Executive

Faculty / School

School of Business Studies (SBS)

Year of Award

2023

Advisor/Supervisor

Dr. Rameez Khalid, Associate Professor, Department of Management

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Rising electricity costs have become a significant burden for Pakistani households in recent years. The average unit price has more than doubled from Rs.10.24 in 2010 to Rs. 23.15 in 2021, with an even sharper increase of 62% recorded in 2023 alone. This rapid escalation is driven by several factors, including rising production costs, increased demand, currency devaluation, and regulatory changes mandated by the International Monetary Fund (IMF). This situation not only imposes a financial burden but also reflects broader issues of energy management and sustainability. The lack of efficient tools for monitoring electricity consumption exacerbates this problem, leaving residents without crucial data to make informed decisions. Household electricity consumption constitutes a significant share of the total electricity consumption in Pakistan. Approximately 47% of the total electricity units sold, amounting to roughly 42,055 GWh, are consumed by households. Given the current unit prices, the household sector bears a substantial financial burden, collectively paying around 970 billion PKR (equivalent to 3.4 billion USD) in electricity bills. The volatility in electricity prices makes it difficult for households to accurately predict their consumption and proactively manage their expenses. In light of these challenges, this research explores the feasibility of launching a novel mobile solution. This solution aims to provide real-time electricity bill information for major electrical equipment, empowering households to make informed decisions about their consumption patterns. By bridging the information gap and promoting energy efficiency, this solution has the potential to alleviate the financial burden on households, contribute to environmental sustainability, and foster responsible energy management practices. Some of the key benefits for such a solution are included.

-Immediate awareness: Users can identify wasteful practices and inefficiencies in real-time, leading to quicker behavior changes.

-Data-driven decisions: Real-time data empowers users to make informed choices about their energy use, resulting in significant cost savings.

-Resource conservation: Understanding peak demand allows users to shift consumption to off-peak hours, reducing strain on the grid and conserving resources.

Research was conducted to understand the impact that real-time feedback plays in shaping sustainable consumption behaviors. Studies show that personalized feedback, tailored x to individual preferences, is particularly effective in promoting long-term behavior changes and promoting sustainable and efficient energy consumption. Furthermore, understanding electricity consumption patterns and consumer behavior is crucial for designing effective energy management tools. Factors like socioeconomic status, lifestyle, and technological advancements all influence consumption patterns. Integrating dynamic pricing structures and real-time pricing into mobile apps can significantly influence consumer behavior and shift peak demand. To assess the market potential for launching a new electricity bill management app. The study is focused on households with high electricity consumption (> 300 units). Using a multi-method approach, using government and private sector data and studies, purposive interview with Industry experts and early adopters of the solution and convenient sampling through online survey aimed at understanding the market potential, market characteristics and most appropriate business strategy for the solution. The analysis of the primary and secondary research data leads to clear indication of a strong potential market for such a solution. With a market size of approx. 32.2 Mn households and a target market of approx. 2.58 Mn households that can potentially benefit from such a product based on affordability, need for a solution and the internet penetration in Pakistan. The survey was conducted to understand the level of satisfaction with electricity bills across different income brackets. The majority of respondents, even those with higher incomes are dissatisfied or very dissatisfied with their bills. This dissatisfaction among higher-income brackets indicates a potential market for the app, where features that help to manage and reduce bills could be very appealing. It also suggests that despite having higher incomes, there is a concern about the costs of electricity, which could be due to higher consumption or a desire for more efficient billing and consumption information. The research also aimed at determining the characteristics and business strategy for such a solution, the analysis points towards have a strong distribution model utilizing online e-commerce platforms, setting up website for direct sales, and social media marketing. Data & privacy protection are also crucial for such a solution to be widely acceptable along with strong cyber security, providing transparent information about data collection methods, secure explicit user consent, and implement robust data protection protocols. With an absence of any widely known and available solution such a product would differentiate itself by offering unique features, a superior user experience and competitive pricing. Providing the user with an option to acquire the solution in one-time payment or xi alternatively offering a subscription-based payment option. Solution should emphasize the app’s ability to help users manage and reduce their electricity costs, contributing to economic relief and environmental responsibility. The research is aimed as a guidance for understanding the market feasibility for launch of a solution that can enable users to manage and control their electricity consumption using smart devices and integrated application.

Pages

xi, 65

Download

Available for download on Tuesday, April 03, 2029

The full text of this document is only accessible to authorized users.

Share

COinS