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This study uses a contingent valuation approach to value the willingness-to-pay (WTP) for improved service experienced by households in Nepal following the end of the country's load-shedding crisis of 2008-2016. Using a detailed survey of grid-connected Nepali households, the authors calculate the WTP per outage-day avoided and the residential value of lost (VoLL) and analyze their key drivers. Households are willing to pay, on average, 123.32 NR (USD 1.11) per month, or 65 percent of the actual average monthly bill for improved quality of power supply. The preferred estimates of the VoLL are in the range of 5 to 15 NR/kWh (Ø4.7-Ø14/kWh). These estimates are below the marginal cost of avoided load shedding, and virtually the same as valuations at the beginning of the load-shedding crisis.

Electric Power --- Electricity --- Energy --- Energy and Poverty Alleviation --- Energy Demand --- Energy Policies and Economics --- Living Standards --- Load Shedding --- Poverty --- Power Reliability --- Residential Electricity Supply --- Willingness to Pay