This paper estimates household demand for electricity using a micro-level household expenditure data set. A two-stage estimation method where the endogenous block price estimates are obtained from a discrete block choice model is used. This method successfully identifies a downward sloping conditional demand function with the data, while both the usual two-stage method with instrumental variable estimation and the Hewitt-Hanemann discrete-continuous model fail to do that. The paper simulates the impacts of two hypothetical pricing reforms that reduce the number of blocks and make the price gap smaller. It is shown that the reform may increase the overall consumer benefit, but is regressive.