The survey reveals a near complete electrification rate in urban areas and 92 and 94 percent electrification rates in rural areas of Alwar and Jaipur respectively. The National Family Health Survey (NFHS) of 2015-16 closely reflects these findings, reporting 99 and 96 percent electrification in urban and rural areas of Jaipur, and 97 percent electrification in rural areas of Alwar. Of 2,027 households surveyed in the sample, 1,637 households had a metered electricity connection; 904 of these households had complete socioeconomic information and matched to the administrative billing data. Table 2 shows that the consumption distribution of the sampled households is able replicate the consumption distribution from the billing cycle-level data set over the selected period.<sup>14</sup> These matching patterns allay concerns related to sample selection in the overall distribution, except from the 95<sup>th</sup> percentile onwards of the consumption distribution - where our sample appears to represent a lower fraction of households than in utility’s customer database.

To capture household-level income, the survey contained modules pertaining to farming, livestock, self-employment, casual labor activities, salaries jobs and remittance earnings for each adult member of the household. Total household income was calculated as the sum of incomes across each of these modules and household members. The survey had a non-response rate of approximately 9% on income questions -- these non-responsive households were also excluded from the sample. To keep the survey tractable and short, data on household consumption expenditure or assets and liabilities information was not collected. As a result, household disposable income cannot be calculated separately from total household income. Finally, household-bills for which the annualized electricity bill amount was greater than 75% of annual reported household income were excluded. This restriction is imposed to account for the fact that households also need to pay for food and other essentials besides electricity throughout the year.

After excluding observations based on the income criteria and after matching household survey data to the administrative data, the final sample contained 7,615 billing-cycle level observations comprising of 805 unique customers with an average of 13.4 billing cycles per customer in the data set. Ninety-six percent of these observations are from consecutive cycles, implying that a majority of households do not sort in and out of the panel. Tables 3 summarizes socioeconomic characteristics of the sampled households and shows the share of households by various employment categories.

The survey also collected information on ownership and intensity of use of electrical appliances, to estimate the demand for residential energy services. Detailed usage information in the survey combined with official wattage statistics of common household appliances, are used to calculate the demand for household energy services.<sup>15</sup> The demand for energy at the appliance level is computed by summing the total hours for which an appliance is used over all days in the billing cycle multiplied by its standard wattage information and divided by the number days in the billing cycle. Each of the 24

> 14 We selected the consumption distribution from January and February 2017 to produce this graph as these are the last two months in the administrative data that is closest to the period that we began survey data collection (April 2017). This allows us to best compare the consumption distribution across the two data sets.

> 15 We obtain wattage information of common household appliances from Bureau of Energy Efficiency standards for 2012-13 and online load calculators provided by Tamil Nadu Generation and Distribution Corporation <u>(https://www.tangedco.gov.in/load_calculato.html )</u> and Paschim Gujarat Vij Company Limited

> <u>(http://www.pgvcl.com/consumer/CONSUMER/calculate_n.php</u> )

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