An Evaluation of Customer Satisfaction and Power Theft in The Electricity Market of Ghana: A Servqual Approach

Abstract

Electricity theft has gained a lot of attention in recent years due to its severe impact on the energy sector, especially in developing countries. Although electricity theft methods such as meter by-passing and meter tampering and their effect of huge distribution losses are well-known in Ghana, the government continues to search for an effective system to nip the problem in the bud. Among the drivers of electricity theft identified in various studies are high tariffs, corruption and poor law enforcement. Part of the solution to the canker is in improving service quality as studies in other countries have established a relationship between customer satisfaction and electricity theft. Through an online research questionnaire and using the SERVQUAL Approach, this study set out to ascertain the level of customer satisfaction in the electricity market of Ghana, identify the reasons for power theft and determine the relationship between customer satisfaction and power theft. Overall, respondents were not satisfied with the service quality in the electricity market of Ghana. All five service quality dimensions of empathy, assurance, tangibles, responsiveness and reliability were rated low. Thus, the probable reasons for power theft such as high tariffs and poor customer service were confirmed. Further, there was a negatively significant relationship between service quality and power theft among electricity consumers. As a way forward, electricity companies in Ghana should enhance the experience of their customers by improving the quality of service they provide. This improvement in service quality complemented with other strategies such as investment in theft prevention and detection technologies would go a long way to addressing electricity theft in Ghana.