USAID/Haiti Pilot Project for Sustainable Electricity Distribution (PPSELD) Willingness to Pay Survey Report

PPSELD was launched in 2013 when the Caracol Industrial Park (CIP) power plant was providing electric service to CIP clients, as well as to approximately 1,300 customers in and adjacent to Caracol. The project serves the communes of Caracol, Limonade, Terrier Rouge, Trou du Norde, and a portion of Saint Suzanne, and provides reliable electric service to more than 7,200 customers on a twenty-four basis via a 10 MW HFO-diesel power plant, commissioned in 2012. Tariffs in the PPSELD service area are governed by the approved tariff for Electricite de Haiti (EdH), which are not cost reflective. One of the principal purposes for establishing PPSELD was to demonstrate the relationship between high-quality electric service and cost-reflective pricing. USAID and the Government of Haiti reached an agreement in the project design phase to consider cost-reflective tariffs for PPSELD after having expanded service to a critical mass of consumers and achieved high service quality. To inform the decision-making process regarding tariff reform for PPSELD, a willingness to pay survey was conducted in selected housing clusters in close proximity to the PPSELD service territory that had not yet received PPSELD service. The survey was designed to evaluate the willingness to pay for electricity among households in the villages of Phaeton, Poulette, and Grand Bassin. The survey instrument was designed to collect data on energy consumption, household income, principal economic activities, and other relevant information. The survey was implemented over a ten-day period, with a sample size of 535 households randomly selected from a total of 1,961 houses in the three villages. The survey team used satellite imagery to identify and enumerate the houses, and then randomly selected houses for inclusion in the survey. The survey instrument was designed to collect data on the willingness to pay for electricity, as well as other relevant information such as household income and energy consumption. The results of the survey will be used to inform the decision-making process regarding tariff reform for PPSELD. The survey found that households in the villages of Phaeton, Poulette, and Grand Bassin are willing to pay for electricity, with a significant proportion of households indicating a willingness to pay for improved levels of service. The survey also found that households in these villages face significant barriers to accessing electricity, including high costs and limited availability of service. The survey results will be used to inform the development of cost-reflective tariffs for PPSELD, which will help to ensure that the project is financially sustainable and that households in the service area have access to reliable and affordable electricity. The results of the survey will also be used to inform the development of policies and programs to support the expansion of electricity access in Haiti, and to promote the adoption of cost-reflective tariffs in the energy sector. The survey instrument was designed to collect data on the willingness to pay for electricity, as well as other relevant information such as household income and energy consumption. The survey team used a combination of qualitative and quantitative methods to collect data, including household surveys and focus groups. The survey instrument was designed to be culturally sensitive and to take into account the specific needs and circumstances of households in the villages of Phaeton, Poulette, and Grand Bassin. The survey results will be used to inform the development of policies and programs to support the expansion of electricity access in Haiti, and to promote the adoption of cost-reflective tariffs in the energy sector. The results of the survey will also be used to inform the development of programs to support the adoption of renewable energy technologies, such as solar and wind power, in Haiti.