Unveiling regulatory effectiveness as a mediator between service quality and consumer satisfaction
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 6 January 2025
Abstract
Purpose
This study aims to investigate how the service quality provided by distribution companies (DISCOs) impacts consumer satisfaction, focusing on the mediating role of regulatory effectiveness as governed by the National Electric Power Regulatory Authority (NEPRA) in Pakistan’s power sector.
Design/methodology/approach
A quantitative research design was used, with data collected via online surveys from domestic electricity consumers of five DISCOs in Punjab, Pakistan. Data analysis was performed using SPSS-25 and SmartPLS-4 software.
Findings
The results indicate that service quality significantly affects both consumer satisfaction and regulatory effectiveness, with regulatory effectiveness positively mediating the relationship between service quality and consumer satisfaction.
Research limitations/implications
The limitations of this study include a cross-sectional design and multistage sampling, which may introduce bias and inadequately represent diverse demographics. Future research should involve commercial users, use longitudinal designs and adopt mixed methods for deeper insights. Nevertheless, the findings emphasize the mediating role of regulatory effectiveness in linking service quality to consumer satisfaction, highlighting the importance of governance in the electricity sector.
Practical implications
The findings offer valuable insights for policymakers, DISCO managers and regulatory bodies, underscoring the need to enhance service quality and regulatory practices to improve consumer satisfaction. Collaboration between DISCOs and NEPRA is recommended to address inefficiencies and governance issues, focusing on infrastructure development, transparency and accountability to enhance the consumer experience in Pakistan’s electricity sector.
Originality/value
This study contributes to the literature by introducing regulatory effectiveness as a mediator between service quality and consumer satisfaction within the power sector, guided by institutional theory.
Keywords
Acknowledgements
The authors extend their gratitude to Mr. Asim Ahmad for his editing assistance, to the participating respondents and to the editor and reviewers for their valuable comments during the peer review process.
Funding: The authors declare that no funds, grants or other support were received during the preparation of this manuscript.
Declaration statements
Competing interests: The authors have no relevant financial or nonfinancial interests to disclose.
Citation
Iqbal, S., Taib, C.A.B. and Razalli, M.R. (2025), "Unveiling regulatory effectiveness as a mediator between service quality and consumer satisfaction", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-10-2024-0005
Publisher
:Emerald Publishing Limited
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