Factors Affecting Adoption of Online Electric Bill Payment Systems A Study on Selected Postpaid Customers of Ethiopian Electric Utility (EEU) in Addis Ababa

Abstract

Ethiopian Electric Utility (EEU) is the sole public enterprises responsible to administer electric distribution network, sell electric energy to customers and collect electric bills. The main objective of this study is to examine the level of adoption of online payment system and identify factors affecting the choice of payment methods. Data for the study were collected from postpaid customers in Addis Ababa city. Multistage sampling methods were used to select the sample respondents including household and institutional customers and data were collected using survey questionnaire. In-depth interview was conducted with Key informants from EEU, Addis Ababa regional office. In addition, pertinent secondary data were collected from EEU Addis Ababa regional office and used in the study to support the primary data. Both descriptive and inferential statistical tools were used to analyze the collected data. Innovation Diffusion Model was used as a conceptual model for the study. The finding of the study showed that only less than a quarter of the respondents have started paying their electric bill online through CBE birr, Mobil banking or Telebirr. The use of online bill payment were found to be significantly associated with age, gender, employment status, education level, amount of monthly bill and distance from customer service centers. In addition, simplicity and communication through mass media were found to be significant factors affecting adoption of online payment system. In order to increase the adoption rate of the online methods, EEU is advised to further simplify the online system and promote the system through TV, Radio and Social media.