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.