Kaduna Electric (Nigeria) has started installing free prepaid metering for its customers.
The standard approach to recovering the cost of electricity provision is to bill customers monthly for past consumption. If unable to pay, customers face disconnection, the utility loses revenue, and the service provision model is undermined. A possible solution to this problem is prepaid metering, in which customers buy electricity upfront and use it until the prepaid amount is consumed. We use data from Cape Town, South Africa to examine the effects of prepaid electricity metering on residential consumption and returns to the electric utility. Over 4,000 customers on monthly billing were involuntarily assigned to receive a prepaid electricity meter, with exogenous variation in the timing of the meter replacement. Electricity use falls by about 13 percent as a result of the switch, a decrease that persists for the following year. This creates a tradeoff for the utility: revenue from consumption falls but more of it is recovered on time and at a lower cost. The benefits to the electric utility outweigh the costs, on average, though results are very heterogeneous. Poorer customers and those with a history of delinquent payment behavior show the greatest improvement in profitability when switched to a prepaid meter. These findings point to an important role for metering technologies in expanding energy access for the poor.
RSA National Bureau of Economic Research
The Sokoto State Chairman of the National Youth Association, Mukhtar Bello Abdulraham, has commended Kaduna Electricity Distribution Company for providing free prepaid meters to its customers in Sokoto State.
The Philippine Department of Energy-Consumer Welfare and Promotion Office (DOE-CWPO) is pushing to expand the use prepaid power services to allow consumers to be able to monitor and control the consumption of their electric appliances and devices to fit their budget, thus saving money, too. [more...]
The Jamaica Public Service Company (JPS) has officially rolled out its pre-paid electricity service across the country.
In a statement this afternoon, JPS Vice President of Customer Service and Communications at JPS Keith Garvey said the new service dubbed, Pay as You Go are for customers who want to manage their electricity costs and keep track of their energy use.
According to the light and power company, residential and small business customers who switch from post-paid to pre-paid electricity consumption typically experience savings of between 35 per cent to 50 per cent. [more]