AcknowledgementsAll too soon the curtain has been drawn and all that we are now including the knowledge and wisdom we have acquired is by the Grace of the Almighty working through the reputable Lecturers of College of Engineering (Electrical/Electronic Engineering Department) KNUST.
It is therefore, by this reason that our Sincere acknowledgment is directed Firstly to the Almighty God for His abundant Grace which sustained us right from the onset thus, the commencement of our Project to finish. Had it not been His majestic interference, our honourable Supervisor in the Person of Dr. Emmuel Kwaku Antoh wouldn’t have deem it wise to bestow upon us the greatest and heart-warming Project (ASSESSMENT OF PREPAID METERS AS A TOOL FOR MOBILIZATION OF REVENUE TO THE UTILITY COMPANY, ECG). Our heartfelt gratitude goes to our Supervisor for coaching and making the best out of us, making our whole project an easy nut to be cracked. A very big thank you, to the ECG’s MIS office for giving us the maximum attention that we sook even though it we beyond their reach, and to everyone who contributed to the success of the project List of AbbreviationsECG-Electricity Company of Ghana ZETDC-Zimbabwean Electricity Transmission and Distribution Company TANESCO-Tanzania Electricity Company SBU-Strategic Business Unit MIS-Management Information SLT-Special Load Tariff NSLT-Non-special Load Tariff KNUST- Kwame Nkrumah University of Science and Technologies AbstractThe Electricity Company of Ghana (ECG) generally has two billing systems: prepayment system and post-payment system.
The prepayment system was introduced here in Ghana in the year 1994, to deal with challenges such as debts, illegal connection, and meter tampering and customer dissatisfaction with bills which are challenges associated with the post-payment billing system. Prepaid meters are more expensive than electromechanical meters. A lot of money is accordingly required for investment in a prepayment system. This study focused on evaluating the effectiveness of prepaid meters in revenue mobilisation using Ashanti and Eastern Regions as case study areas.
Questionnaires were distributed to 100 prepayment system customers within Kumasi, Ashanti Region. The questionnaires were used to find out the challenges faced by customers, their meter type preference as well as the opinions they have concerning the general advantages of prepaid meters. Out of the 94 answered questionnaires, 72% of the respondents preferred prepaid meters to electromechanical meters. Another set of questionnaires (75) were distributed to the employees of ECG in the Ashanti Region Strategic Business Unit. From the responses given by the respondents, it was found that the prepayment system has not dealt entirely with the problems of the post-payment system.
For instance, 96% of the responses confirmed that some customers tamper with prepaid meters. Two(2) analysis were conducted; 1. Analysing the Raw Data of the Revenue collected over the years from 2005-2008(The period in which there were no Tariff adjustment or Power fluctuations) 2. Analysing Revenue collected per Capita, also from the year 2005-2008(The period in which there were no Tariff adjustment or Power fluctuations) After analysis of; 1. Raw Data Collection of Revenue, the percentage increment comparing the Two(2) Regions(Ashanti and Eastern) was 24.1% and the increment between periods (from 2005-2008, with 2005 as the Baseline) was 18.9%. 2.
Revenue per generated from the post-payment system and prepayment system over a 4 year period (2005-2008) in the Ashanti Region, the percentage increase in revenue per head in the post-payment system was % while that of the prepayment system was %. This confirms the consciousness of prepayment customers about energy conservation. Considering the ability of prepaid meters to eliminate debts and reduce expenditure on revenue collection, it is more effective at revenue collection than credit meters. However, over the three year period of study, credit meters generate more revenue than prepaid meters.
Table of ContentsTOC z o “1-3” u hAcknowledgements PAGEREF _Toc515365921 h 1List of Abbreviations PAGEREF _Toc515365922 h 2Abstract PAGEREF _Toc515365923 h 3Table of Contents PAGEREF _Toc515365924 h 41.Introduction PAGEREF _Toc515365925 h 61.1 Background to Study PAGEREF _Toc515365926 h 61.2 Issues and Concerns PAGEREF _Toc515365927 h 71.3 Justification of Study PAGEREF _Toc515365928 h 71.4 Aim PAGEREF _Toc515365929 h 81.5 Objectives PAGEREF _Toc515365930 h 82.Literature Reviews PAGEREF _Toc515365931 h 85. PAGEREF _Toc515365932 h 82.1 Introduction PAGEREF _Toc515365933 h 82.2 The Impact of the Use of Prepaid Meters on Revenue Generation at ZETDC PAGEREF _Toc515365934 h 92.3 Effects of Prepaid Electricity Billing on Revenue Collection Costs at Kenya Power Company PAGEREF _Toc515365935 h 92.4 The Impact of the Pre-paid Meter on Revenue Generation in Nigeria PAGEREF _Toc515365936 h 92.5 Effectiveness of Prepaid Metering System in Revenue Collection: A Case at TANESCO PAGEREF _Toc515365937 h 102.6 Charging Ahead: Prepaid Electricity Metering in South Africa PAGEREF _Toc515365938 h 102.7 Impact Electricity Prepaid Energy Metering System on Electricity Consumption in Ogbomoso South Local Government Area of Oyo State PAGEREF _Toc515365939 h 113.Theory PAGEREF _Toc515365940 h 113.1 Introduction PAGEREF _Toc515365941 h 113.2 Energy Meters and Billing PAGEREF _Toc515365942 h 123.3 Prepaid Electricity Meters PAGEREF _Toc515365943 h 123.4 Meter Types in ECG PAGEREF _Toc515365944 h 133.5 Data Collection Techniques PAGEREF _Toc515365945 h 143.5.1 Introduction PAGEREF _Toc515365946 h 143.5.2 Observation as a Data Collection Technique PAGEREF _Toc515365947 h 143.5.3 Interviews as a Data Collection Technique PAGEREF _Toc515365948 h 143.5.4 Questionnaires as a Data Collection Tool PAGEREF _Toc515365949 h 153.6 Population and Sample PAGEREF _Toc515365950 h 153.7 Sampling Techniques PAGEREF _Toc515365951 h 153.7.1 Introduction PAGEREF _Toc515365952 h 153.7.2 Probability Sampling PAGEREF _Toc515365953 h 153.7.3 Non-probability Sampling PAGEREF _Toc515365954 h 164 Methodology and Implementation PAGEREF _Toc515365955 h 174.1.1 Introduction PAGEREF _Toc515365956 h 174.1.2 Activities Carried Out During Implementation PAGEREF _Toc515365957 h 174.2.1 Nature of Data and Approach Used for Data Collection PAGEREF _Toc515365958 h 184.2.1.a Data Sources PAGEREF _Toc515365959 h 184.2.1.b Data Types PAGEREF _Toc515365960 h 184.2.1.c Sampling Technique PAGEREF _Toc515365961 h 185. Analysis and Discussion of Results PAGEREF _Toc515365962 h 185.1 Introduction PAGEREF _Toc515365963 h 185.2 Qualitative Data Analysis Results PAGEREF _Toc515365964 h 195.2.1Results from Questionnaires Collected from ECG staff PAGEREF _Toc515365965 h 195.2.2Analysis of and Findings from Customers’ Opinions PAGEREF _Toc515365966 h 285.3Findings from analysis of quantitative data PAGEREF _Toc515365967 h 385.3.1Introduction PAGEREF _Toc515365968 h 395.3.2Analysis of revenue acquired from prepayment customers in the Ashanti Region PAGEREF _Toc515365969 h 395.3.3Findings from analysis of revenue acquired from the prepayment system customers of Eastern Region PAGEREF _Toc515365970 h 405.3.4Comparison of the revenue generation capability of the prepaid meter and post-paid meter using revenue data from Ashanti Region. PAGEREF _Toc515365971 h 426. Conclusions PAGEREF _Toc515365972 h 457.
References PAGEREF _Toc515365973 h 458. Appendix PAGEREF _Toc515365974 h 468.A Response to Questionnaires Collected From ECG Staff PAGEREF _Toc515365975 h 468.B Data Collected from Questionnaires Distributed to ECG Customers PAGEREF _Toc515365976 h 528.C Record of Quantitative Data PAGEREF _Toc515365977 h 55 IntroductionIn this Chapter we shall take a look at; 1. Background to Study 2. Issues and concerns 3.
Justification of Study 4. Aims 5. Objectives 1.1 Background to StudyThe standard approach to recovering the cost of electricity provision is to bill customers monthly for past consumption 1. If unable to pay, customers face disconnection, the utility loses revenue and the service provision model is undermined 1. Prepaid metering in its simplest form refers to paying for electricity, gas or energy before it is used 2. In the Western world, customers of utility companies are given the choice to opt for prepaid meters by electricity, gas and water companies.
Many electricity utility companies introduced prepaid meters as a way of enhancing revenue collection efficiency. In South Africa, prepaid meters were introduced in 1984 mainly to supply power to low income earners at affordable rates. The success of South Africa in the use of prepaid meters is the factor that motivated countries like United Kingdom, Turkey, India and Argentina to adopt prepaid meters 3. Other countries in Africa later started the replacement of post-paid meters with prepaid meters.
Some of the electricity distribution companies did this in order to enhance billing efficiency by reducing revenue collection costs and debts resulting from the use of post-paid metering system. Prepaid Meters especially smart ones have a lot of benefits. They generate revenue in advance of consumption and cut down on non-payment and late payment of electricity bills 1. Hence their popularity in Europe and America. Availability of adequate cash from revenues to support business operations depends on an organisation’s strategies on sales, cash collection and disbursements 4. Two main cash collection options are available to electricity utility companies: prepayment and post-payment systems.
Considering the difference in the economic growth and development of countries in Africa and of those in Europe and America, the question arises as to whether prepaid meters are suitable for power utility companies and consumers of African nations. Few studies have been conducted in Zimbabwe, Kenya, Ghana and other African countries to analyse how prepaid meters affect power distribution companies and their customers. To fully discover the benefits and disadvantages of prepaid meters in Africa, a lot of studies must be carried out. The Electricity Company of Ghana (ECG) is one of the seven public institutions involved in the power sector of Ghana 5. They are responsible for distribution of electricity to some industrial, commercial and residential consumers of electricity. It began as an electricity department on 1st April 1947 responsible for distribution of power in the entire country 5.
ECG was later made responsible power distribution in six administrative regions in southern Ghana namely, Ashanti, Central, Eastern, Western, Greater Accra and Volta Region 5. Over the years, ECG has introduced various meters to consumers in order to improve its billing efficiency and to reduce non-technical losses. An International Finance Corporation (IFC) report has indicated that ECG loses about $350 million revenue every year 6. 1.2 Issues and Concerns Prepaid metering was adopted by ECG among other reasons to deal with supply side challenges such as reduction in revenue collection expenses, eliminate bad debts, efficient cash flows with overall aim of improving the financial position of the company 2. Non-technical losses account for over 70% of total losses experienced by electricity supply companies. For instance, in 2013, 2242 illegal connections were detected out of which GHC11.8 million revenue was recovered for the state 7.
The implication is that any billing system capable of reducing debts and non-technical losses will greatly enhance the revenue collection effectiveness and efficiency of ECG. Generally, deploying the right metering technology provides powerful tools to reduce total losses and increase revenue collection rates 8. The use of Credit (post-paid) meters for billing customers leads to the accumulation of debts owed to ECG. Over the years, the post-payment system has experienced illegal connections and free power usage, though ECG personnel visit consumers premises routinely for meter reading and distribution of bills 8. The challenges posed by the use of credit meters greatly reduces the total revenue earned by ECG. The use of credit meters also result in expenditure on meter reading, production and printing of bills as well as on distribution of bills.
Prepaid electricity meters work on debit basis: customers purchase electricity and load it onto their meter 2. Accordingly, the issue of debts owed to the utility is eliminated. . Deloitte’s report on prepaid meters in India, 2011 explains that prepaid meters are able to solve issues like bad debt, frequent disconnection and dissatisfaction of consumers due to the suspicion of being overbilled by utility providers. Considering the above mentioned factors, prepaid meters have the potential of solving the issues of the credit metering system. The downside of prepaid meters is that they are more expensive than electromechanical meters used in the post-payment system.
1.3 Justification of StudyThis study is intended to evaluate the effectiveness of the prepaid metering system as a tool for revenue mobilization in the Electricity Company of Ghana. The focus of this study is therefore on the utility company. A few studies have been conducted in some West African countries that are quite similar to this study. However, most of these studies were conducted during the initial stages of prepaid meter installations in these countries.
For instance, in Kenya a study was conducted in 2014 to determine the impact of prepaid meters on revenue collection. As at the time the study was conducted, only 30% percent of prepaid meters had been installed 4. This implied that the full impact of losses due to tampering was not accounted for. The Electricity Company of Ghana due to significant revenue losses resulting from debts owed by some of its post-paid customers as well as tampering of post-paid meters, introduced prepaid meters. Research has revealed that only 30% of customers who use post-paid metering system pay their bills willingly 9. The company therefore introduced prepaid meters to solve problems associated with the post- paid metering system.
Prepaid meters are more expensive than electromechanical meters. This implies that a lot of money is required for nationwide prepaid meter installation. It is therefore important to know for sure whether the benefits of prepaid meters outweigh their challenges. 1.4 AimEvaluation of the Effectiveness of prepaid meters as an effective tool for revenue mobilisation (Case Study: Ashanti and Eastern Regions).
1.5 Objectives 1. Literature review on the impact of prepaid meters on revenue mobilisation and electricity metering for billing and revenue collection purposes. 2. Using structured questionnaires to document the billing procedures and problems, as well as other revenue collection challenges of the electricity utility company (ECG). 3.
Using structured questionnaires to document the challenges customers face in the prepaid system and their views on prepaid meters. 4. Comparative analysis of records of electricity bill payments (post-payment system) and purchases (prepayment system) from 2006 to 2016. 5. Any statistical data on the percentage improvements in revenue collection for the utility. Literature ReviewsThis chapter comprises of; 1.
Introduction 2. The Impact of the Use of Prepaid Meters on Revenue Generation at ZETDC 3. Effects of Prepaid Electricity Billing on Revenue Collection Costs at Kenya Power Company 4. The Impact of the Pre-paid Meter on Revenue Generation in Nigeria 5. Effectiveness of Prepaid Metering System in Revenue Collection: A Case at TANESCO 6.
Charging Ahead: Prepaid Electricity Metering in South Africa 7. Impact Electricity Prepaid Energy Metering System on Electricity Consumption in Ogbomoso South Local Government Area of Oyo State 2.1 IntroductionPrepaid metering for electricity billing has been examined in terms of how it affects revenue generation in other nations. This chapter contains reviews of articles, journals and works related to the impact prepaid metering has had on revenue generation. 2.2 The Impact of the Use of Prepaid Meters on Revenue Generation at ZETDC A study was conducted on the impact of the use of prepaid meters at Zimbabwe Electricity Transmission and Distribution Company. 108 managers were selected at random out of 120 managers for the study.
95 questionnaires were distributed and received. 6 of the questionnaires were partially filled and therefore not used for analysis. Relevant records from ZETDC library and operations report were reviewed to get more information 10. Microsoft Excel was used for data entry. Statistical Package for Social Sciences was used to analyse the data obtained from 89 completely answered questionnaires.
It was discovered in this work that prepaid metering increases revenue generation mainly by compelling consumers to pay for electricity before they use it and reducing revenue collection costs. It was also found that prepaid metering is beneficial to consumers as fixed tariffs are used and not estimates 10 This study used only qualitative data for analysis. The impact prepaid meters have had on revenue generation could therefore not be quantified. However, the findings of the study, was based on the opinions of highly experienced managers. 84.3% of the respondents had worked in the company for more than 5years.
The findings can therefore be relied on. 2.3 Effects of Prepaid Electricity Billing on Revenue Collection Costs at Kenya Power Company A study was conducted at Kenya Power Company on how prepaid electricity billing affects revenue collection costs at Kenya Power Company. Secondary data was obtained from the company’s management accounts and financial statements from the time prepaid meters were installed (2009) to the time the research was conducted. Observation and informal interviews were used to gather primary data. Data was also gathered from the company’s databases. Statistical Package for Social Sciences was used to analyse the data gathered.
Regression models were also used to anticipate an observable relationship between variables. At the end of the research, it was found that in 5 years, the revenue collection costs decreased by 18.57% as the number of prepaid meters rose from 22,250 in 2009 to 530,000 in 2014 which accounts for a 2282.02% rise in the number of prepaid meters. As at the time the study was conducted, only 30% of the prepaid meters had been installed. This implies that the results obtained in the study does not reflect the full impact prepaid electricity billing has had on the revenue collection costs of Kenya Power Company. The findings of the study are quantified its findings.
2.4 The Impact of the Pre-paid Meter on Revenue Generation in NigeriaThe impact of pre-paid meter on revenue generation was examined. The electricity bills of a consumer who was previously on the post-paid billing system and later moved to prepaid billing system was used for the analysis. The post-paid bills sent by the Power Holding Company of Nigeria, the pattern of payment of post-paid bills by the consumer and the pattern of payment for pre-paid power were studied for thirteen months each. The post-paid bill payment pattern was studied from 03/02/2007 to 21/01/2008 and the pattern for pre-paid power purchase was studied from 28/04/2008 to 05/01/2009 11. The total amount of post-paid bills to be paid by the consumer within the period of study was 35,159.60 naira while the total pre-paid power purchased was 4700 naira.
This implies that the energy used by the customer decreased by 86.63% after being switched to prepaid meter. At the end of the post-paid study period, the customer owed 17159.6 naira. This means that 48.8% of revenue to the utility was in debt by the end of the post-paid meter study period. The prepaid system has no debts associated with it. Microsoft Excel 2003 was used for data analysis. It was found that prepaid meter increases the revenue collection, but reduces revenue generation because it is reliability based.
It is recommended that the reliability of the power system be improved as a way of increasing revenue generated by prepaid meters 11. In this work, the power purchasing and bill payment pattern of a single consumer is used for analysis. The findings of this work therefore does not give a complete picture of how prepaid meters affect revenue generation because consumers may exhibit different payment and purchasing patterns based on their finances and what they use electricity for. 2.5 Effectiveness of Prepaid Metering System in Revenue Collection: A Case at TANESCOA study on the effectiveness of prepaid metering system in revenue collection was done at Tanzania Electricity Company.
The study was conducted in one district. The study analysed the benefits of prepaid meters to both the company and its customers. Collection of data was done using both questionnaires and documentary analysis. Sixty questionnaires were distributed to both prepaid customers and staff of Tanesco financial department.
Each group was given thirty questionnaires. Interviews were used to gain insight into the views of senior managers on the performance of the prepaid metering system 12. Statistical Package for Social Sciences and Microsoft Excel was used for analysis of data. It was found that the prepaid metering system has certain challenges that make it ineffective in revenue collection at Tanzania Electricity Company. Some of the challenges are faulty meters, power theft and system failures. It was recommended that the various challenges to the prepaid metering system must be addressed to make it more effective 12.
This study used qualitative data and therefore could not quantify the extent of ineffectiveness of the prepaid metering system. 2.6 Charging Ahead: Prepaid Electricity Metering in South AfricaThe effects of prepaid electricity on residential consumption and returns to the electric utility was examined in Cape Town, South Africa. The monthly electricity use of 4,246 customers in a mandatory meter replacement project was observed before and after replacement. The customers were randomly put into groups and the switch from post-paid to prepaid meters was done at different times. Fifty-four monthly observations were carried out on every customer. Sixteen of the observations were from a prepaid meter.
Analysis of data was done by observing plots of average kilowatt-hour consumed by targeted customers from prepaid and post-paid meters. Instrumental variables and ordinary least squares were used as tools for analysis 1. The study showed that electricity use falls by about 13% as a result of the switch. However, the utility provider benefited from the timely payment of bills, low cost of revenue collection and the elimination of the chance of partial payment of bills. The results of this study is highly reliable.
This is because parameters that affect returns to the utility company such as technical losses, billing costs and prepaid vendor margins were considered in the analysis of the data obtained. The study does not give any clear information about mechanisms behind customer response to prepaid meters 1. 2.7 Impact Electricity Prepaid Energy Metering System on Electricity Consumption in Ogbomoso South Local Government Area of Oyo State The impact of prepaid metering on electricity consumption was investigated. One hundred customers who were post-paid billing customers and later switched to prepaid metering were selected for the study. Questionnaires were administered to them to determine their electricity usage and management. The bills of the customers were also studied to get payment details for the post-paid system and energy purchasing details for the prepaid system 13.
It was discovered in the study that the introduction of prepaid meters in the area of study enhanced revenue collection as it eliminated debts which is a major challenge in the post-paid billing system. At the end of the period of studying the post-paid system, it was found that the consumers paid 36000 naira for electricity consumed and owed 27434.01 naira. This implies that 43.25% of the amount to be paid was in debt. The study shows that prepaid metering reduces revenue generation since it is reliability based 13.
10,500.07 naira was the total amount paid for electricity consumption at the end of the prepaid study period. This implies that electricity consumption decreased by 83.44%. In the prepaid system debts were eliminated. TheoryIn this chapter, we shall look at; 1. Introduction 2.
Energy Meters and Billing 3. Prepaid Electricity Meters 4. Meter types in ECG 5. Data collection and Techniques 6. Population and Sample 7.
Sampling techniques 3.1 IntroductionIn this chapter, various concepts and terms related to billing, metering and revenue collection are highlighted and explained. The various techniques used in data collection are also stated and explained. This chapter also explains various sampling techniques. 3.2 Energy Meters and BillingThe energy meter is an electrical measuring device which is used to record the electrical energy consumed over a specified period of time in terms of units 14. An energy meter measures the electric power consumed by a residence, business or an electrically powered device 15. Energy meters therefore provide information to utility companies concerning how much each customer should pay after a particular period of power consumption.
An energy meter is made up of electrical and mechanical components and its design depends on the current and voltage magnitudes to be measured 15. Different types of energy meters have been introduced over the years to customers by utility companies. The two major classes based on the technology used are the electromechanical induction meters and electronic meters. Utility companies offer different payment modes to their customers. The payment option however depends on the company. For instance, United Kingdom Power Company offers four payment options to its customers: monthly direct debit, quarterly direct debit, payment on receipt of bill and use of prepaid meters.
In most African countries, the post-payment and prepayment billing systems are the usual payment options offered to consumers. 3.3 Prepaid Electricity MetersIn 1994, Prepaid meters were introduced in Ghana by the Electricity Company of Ghana, and since then, it has undergone several phases due to Technological advancements. The period of introduction of the said meter in Eastern Region was in May 11, 1999. Examples of the Prepaid meters employed in ECG include; 1. E-CASH I 2. E-CASH II 3.
E-CASH III 4. SMART G 5. SMARTCASH-BOT 6. KAMSTRUP (NURI) 7.
ENERSMART (HOLLEY) Prepaid electricity meters work on debit basis: customers purchase electricity and load it onto their meter 10. Customers of electricity companies who have prepaid meters installed in their homes pay for power prior to consumption. Prepaid meters present several advantages and disadvantages to both electricity consumers and utility companies. Stoner, 2009 as cited by Miyogo, Nyananba and Nyangweso, 2013 states that prepaid meters were first introduced in South Africa in the mid-eighties to supply power to low income neighbourhoods at affordable rates. Prepaid meters give customers more control over power consumption and make them more conscious of energy conservation measures. Deloitte’s report on prepaid meters in India, 2011 explains that prepaid meters are able to solve issues like bad debt, frequent disconnection and dissatisfaction of consumers due to the suspicion of being overbilled by utility providers.
Prepaid meters have the potential of solving the numerous issues caused by the traditional post-paid billing system. The introduction of prepaid meters in various African countries has helped utility companies recover energy debts and has improved revenue collection. It has also led to the decline of illegal connections in some countries. However, the electronic meters used in prepaid billing systems are more expensive than the traditional electromechanical ones.
Acquiring capital for the installation of these meters is quite a challenge for many developing nations. Though meter tampering is one of the reasons for the adoption of prepaid meters in many African countries, the practice still goes on in the prepayment system. This greatly undermines the ability of prepaid meters to deal with non-technical losses. Advantages of Prepaid Meters 1. Paying affront eradicates carryovers in the payment of electricity consumption 2. No or minimum losses in revenue collection 3.
reduction in meter tampering 4. refusal to payment of electricity bills is only to the disadvantage of the consumer 5. Autocratic way of billing helps reduces generation and collection losses 6. The debit nature of it makes the customer conscious of electricity conservation 7. Budget Friendly Disadvantages 1.
Voltage problems 2. Electricity theft 3. Load shedding affecting the flow of revenue collection 4. Reluctance to the payment of bills 3.4 Meter Types in ECGThe two main classes of meters used in ECG are the whole current and transformer operated meters.
Whole current meters are connected directly at the circuit of the circuit to be measured at the premises of residential and non-residential customers with low energy requirements 15. Based on the technology used, whole current meters may be electronic or electromechanical. Electromechanical meters operate by counting the number of revolutions of a non-magnetic electrically conductive metal discs whose rotation speeds are proportional to the magnitude of power passing through the meter. Such meters have voltage and current coils. A small amount of power is consumed by the voltage coil which is not measured by the meter. The power consumed by the current coil is however measured.
Whole current electronic meters display the energy consumed on and LCD or LED display and some can transmit readings to remote places 15. Electronic meters have higher accuracy (+1%/-1% variation of the nominal value) than electromechanical meters. Unlike whole current meters, transformer operated meters are not connected directly, but interposed at the entry of the circuit to be measured. They are usually used in three phase systems and are utilised for demand above 70kVA or 100A 15.
These meters may be electromechanical or electronic based on the metering application. 3.5 Data Collection TechniquesIn this chapter, we shall look at; 1. introduction to Data Collection Technique 2. observation as a Data Collection Technique 3.
interviews as Data Collection technique 4. questionnaires as a Data collection tool 3.5.1 IntroductionThe quality and effective utility of evaluation, monitoring and research in projects and programmes primarily relies on researchers’ ability to collect and analyse qualitative and quantitative data. Data collection techniques therefore allow us to systematically gather information about objects of study such as phenomena, people and objects and about the environment in which they occur. There are different types of data collection techniques some of which are the use of available information, use of interviews, use of face-face interviews and the use of written questionnaires.
3.5.2 Observation as a Data Collection TechniqueObservation as a data collection technique is done by systematically choosing, watching and recording behaviour and characteristics of living beings, objects or phenomena. The researcher could either participate or not get involved in the situation being observed. The disadvantage of this method is that the observer may only see things related to their interests and miss information that is very critical to the study being conducted. 3.5.3 Interviews as a Data Collection TechniqueThe use of interviews involves questioning respondents orally and recording their responses. If interviews are not conducted properly, reliable data may not be obtained since respondents may not give their sincere opinions on the issue being investigated.
For instance, an interviewer may ask a question in a manner that suggests that a certain response will be preferred over another. The advantage of face to face interviews is that there is no delay between the time questions are asked and when they are responded to. Face to face interviews are quite time consuming and not very appropriate, if it is required that data must be gathered from a large number of respondents. 3.5.4 Questionnaires as a Data Collection ToolA written questionnaire is a data collection tool in which written questions are presented that are to be answered by respondents in a written form 16. Questionnaires can be administered to a large number of respondents. The respondents are given time and space to answer questions and are therefore more likely to give their honest opinions compared to face to face interviews.
The downside to questionnaires is that respondents may delay in answering questions and may not answer all the questions. This can however be prevented to some extent by making the questionnaire as simple as possible. 3.6 Population and SampleA research population is generally a large collection of individuals or objects that is the main focus of a scientific query. Due to the large sizes of populations, researchers often cannot test every individual.
A subset of the population is therefor used for research. This set of individuals who participate in the study make up the sample of the study. Sampling is the process of choosing individuals to make up the sample. 3.7 Sampling TechniquesIn this chapter, we shall take a look at; 1. introduction 2. probability sampling; under it, we have; a.
types of probability sampling 3. non-probability sampling; a. types of non-probability sampling 3.7.1 IntroductionIn every study, it is incumbent on the researcher to clearly define the target population 19. There are no strict rules to follow, and the researcher must rely on logic and judgement.
Sometimes the entire population is sufficiently small and the researcher can include the entire population in the study. This type of research is called a census study 17. Usually, the population is too large for the researcher to attempt to survey all its members. This section explains the various types of sampling methods for research. 3.7.2 Probability SamplingIn probability sampling, each member of the population has a known non-zero probability of being selected for a survey.
3.7.2.1 Types of probability Sampling Random sampling: In this type of sampling, each member of the population has an equal and known chance of being selected 17. The disadvantage of random sampling is that it is time consuming and costly, if the population is very large. The merits are that it fairly selects members of the population to include in the sample and produces samples that are representative of the population. The statistical procedures required to analyse data and to calculate errors are easier than those required in other probabilistic sampling procedures 18. Systematic sampling: In this type of sampling, every nth record from a list of population members is selected for the survey after the sample size has been calculated.
Systematic sampling is simpler than random sampling. Stratified sampling: It involves dividing a population into stratums (examples are middle managers and supervisory managers) and using random sampling to select enough number of subjects from each stratum. The advantage of stratified sampling is that it reduces sampling error. 3.7.3 Non-probability SamplingNon-probability sampling is a sampling technique where the odds of any member being selected for a sample cannot be calculated. The advantage of this sampling technique is that it is cost and time effective. The demerit of non-probability sampling is that it is impossible to know how well the population is represented by the sample.
Again, confidence intervals and margins of error cannot be calculated. 3.7.3.1 Types of Non-probability Sampling Convenience sampling: It involves selecting a sample from somewhere convenient to you (researcher). Haphazard sampling: It involves choosing members of a sample haphazardly in an attempt to achieve randomness. This method often results in selection bias and non-randomness.
Purposive sampling: The researcher chooses a sample based on their knowledge about the population and the study itself. The sample is chosen based on the purpose of the study. Expert Sampling: The sample is chosen from a list of experts in the field of interest. Diversity Sampling: Members of the sample are deliberately chosen so that all views are represented. Those views may or may not be represented.
Quota sampling: Groups in the sample (i.e. Men and women) are proportional to the groups in the population. Snowball sampling: A type of sampling in which research participants recruit other members for study. 4 Methodology and Implementation1.
Implementation 1. introduction 2. activities carried out during implementation 2. Methodology 1.
Nature of Data and approach Used for Data Collection a. Data sources b. Data types c. Sampling Technique 4.1.1 IntroductionThis Chapter highlights and explains the various activities and procedures carried out to satisfy the objectives of this study in order to achieve its aim which is to evaluate prepaid meters as an effective tool for revenue mobilisation. The data collection techniques and sampling techniques used are mentioned. Explanations are provided as to why the techniques used were chosen over other options.
The actual activities carried out in the implementation process are also highlighted and briefly explained. 4.1.2 Activities Carried Out During ImplementationDistribution of questionnaires to employees of ECG: A total of 77 questionnaires were successfully distributed to some employees of ECG in Eastern and Ashanti regions. In Ashanti region, 6 district offices (Ayigya, Abuakwa, Asokwa, Dan Nyame, Manhyia and Soame) were involved in the study while only one district office (Akyem Tafo) participated in the study in the Eastern Region. The number of questionnaires distributed to the districts vary. This was based mainly on the willingness of the employees to participate in the study and on the availability of personnel who are knowledgeable about metering and prepaid meters.
Collection of questionnaires from employees of ECG: The questionnaires were collected on days chosen by participants. The period between distribution and collection greatly varied. Several attempts were made to collect all distributed questionnaires by visiting the various district offices. Eventually, only 58 questionnaires were successfully collected. Distribution of questionnaires to prepayment system customers of ECG: 100 questionnaires were distributed to customers within Kumasi. 6 of the questionnaires were not completely answered and were therefore excluded during data entry.
While distributing and collecting questionnaires, informal interviews were conducted in order to get a deeper understanding of the opinions of customers on prepaid meters. Extraction of data from the two sets of questionnaires: Carrying out steps to obtain information on the revenue generated from supply of electricity to consumers in Ashanti and Eastern Regions: An introductory letter obtained from the Electrical engineering department was taken to the office of the Director of the Ashanti SBU at Manhyia District. A note was received from him which was taken to the MIS department where the data on revenue generated in the case study regions from 2006 to 2016 was obtainedof which we extracted the periods of Non-tariff Adjustment and No load Shedding (‘dumsor’) thus, from 2006-2008. The customer base of the prepayment system was also obtained from the MIS department.
Use of Microsoft excel for analysis of data gathered on revenue. 4.2.1 Nature of Data and Approach Used for Data Collection4.2.1.a Data Sources Primary sources: Data was obtained from questionnaires and informal interviews. Secondary source: Data was obtained from the Management Information System (MIS) department of the Ashanti SBU (Strategic Business Unit) of ECG. 4.2.1.b Data TypesQualitative data: The data gathered using questionnaires was qualitative in nature.
It consisted mainly of the opinions of respondents and could not actually be measured. Quantitative data: Secondary data obtained from the MIS department was numerical in nature and could therefore be measured. 4.2.1.c Sampling Technique Generally, non-probability sampling was used for the distribution of questionnaires. Convenience and Diversity sampling were combined to gather data using two sets of questionnaires. 5. Analysis and Discussion of Results5.1 IntroductionThis chapter focuses on displaying the findings of the study in the form of tables and charts.
The findings from questionnaires will be discussed first. The results from analysing the revenue generated by ECG from the prepayment system from 2006-2016 will be discussed and explained next. 5.2 Qualitative Data Analysis ResultsResults from Questionnaires Collected from ECG staffThe following tables and charts show the responses to the questionnaire from ECG staff. Table 5.1 Display of the response rate for questionnaires distributed to ECG staff District AyigyaAsokwaAbuakwaDan NyameManhyia SoameAkyem TafoTotal Number of distributed questionnaires 15 10 10 16 10 14 2 77 Number of Collected Questionnaires 14 10 9 16 0 8 2 59 Fig 5.1 As depicted in table 5.1 and figure 5.1, 1.
few questionnaires were distributed in each district and in most cases, some questionnaires were not returned. This is due to unwillingness of most employees to participate in the study. Table 5. 2 Employment category of respondents Employment Category Number of Respondents Top level Manager 2 Middle Level Manager 5 Supervisory Manager 23 Technical Staff 19 Non-technical Staff 9 Fig 5.2 As shown on Fig 5.2, 1. 40% of the respondents are supervisory managers 2. 33% are part of technical staff 3.
9% are middle level managers 4. 16% are part of non-technical staff and 5. 3% are top level managers The respondents are evenly distributed among all categories of employment. This implies that the opinions expressed by employees are not biased and are not based on the experiences of only one category of ECG workers. Table 5.3 Steps to Billing Meter Reading Production and Printing of bills Distribution of Bills Other Options 55 30 29 4 Fig 5.3 Steps to Billing From fig 5.3 the employees confirm that meter reading Production and printing of bills and distribution of bills are all steps involved in billing.
Respondents did not add any other steps to the ones mentioned in the options provided. The respondents who chose the option ‘Others’ explained that all the steps are involved in billing. Table 5.4 Accessibility of post-paid meters for meter reading Yes No Others 39 13 7 Fig 5.4 From Fig 5.4, respondents confirmed that 1. some post-paid meters are not located at places that are easily accessible to customers. 2.
65% of the respondents chose are of the view that prepaid meters are located at places that are easily accessible to meter readers. 3. It is therefore confirmed that uneasy accessibility of some meters to meter readers is a challenge of ECG’s post-payment billing system. However, credit meters are more often than not installed at parts of consumer’s premises that can easily be reached.
Table 5.5 Availability of consumers to make meters accessible for meter reading Option Always Sometimes Never Other Opinions Quantity 30 27 1 1 Fig 5.5 Availability of consumers to make meters accessible for meter reading 1. 51% of the responses given are of the view that consumers are always around to make meters available, if meters are not located at easily accessible places. 2. 46% are of the view that customers are not always available. This implies that some customers are not always around when meter readers go round for routine meter reading.
This is one of the challenges of the post-payment billing system. Table 5.6 Location of some ECG customers at Remote places True False 56 3 Fig 5.6 Location of some ECG customers at Remote place From table 5.6 and fig 5.6, 1. 95% of the respondents that some consumers are located at places that are quite far from the ECG branch offices. This implies that ECG has to spend a lot of money on transportation for meter reading and on distribution of bills. Table 5.7 Contributing factors to revenue loss Illegal Connection Meter Inaccuracies Tampering Other factors 56 25 27 16 Fig 5.7 Contributing factors to Revenue loss Referring to fig 5.7, 1.
illegal Connection (45%) is the factor that was chosen by most of the respondents as a contributing factor to revenue loss. 2. Respondents however confirm that meter inaccuracies (20%) and 3. tampering (22%) are also contributing factors. Those who chose other factors only confirmed that all the three factors mentioned contribute to revenue loss.
Table 5.8 Willingness of post-payment system customers to pay their bills. Yes No 25 34 Fig 5.8 Willingness of post-payment system customers to pay their bills. From fig 5.8, 1. a higher percentage (58%) of the respondents agree that customers do not willingly pay their bills.
It is therefore confirmed that unwillingness of customers to pay their bills is a challenge of billing at ECG. Table 5.9 Why prepaid meters were introduced by ECG Reduction of cost involved in billing Elimination of debts owed by customers Reduction of customer dissatisfaction with bills Other Reasons 28 39 38 6 Fig 5.9 Why prepaid meters were introduced by ECG Referring to fig 5.9, 1. reduction of the cost involved in billing 2. elimination of debts owed by customers and reduction of customer dissatisfaction with billing are the reasons why prepaid meters were introduced 3.
37% of the responses confirm that elimination of debts owed by customers is the main reason for the introduction of prepaid meters 4. 27% agree that reduction of cost involved in billing is among the reasons why ECG introduced prepaid meters and 5. 36% affirmed that reduction of customer dissatisfaction with billing is part of the reasons for introducing prepaid meters. Table 5.10 Extent to Which Prepaid Meters Have Dealt with Challenges of the Post-payment System Completely Partially 26 33 Fig 5.10 Extent to Which Prepaid Meters Have Dealt with Challenges of the Post-payment System More of the respondents (56%, fig 5.10) agree that prepaid meters have dealt with the challenges of the post-paid system partially. This implies that there are still a lot of challenges associated with the prepaid billing system. Table 5.11 Reports of Tampering by Prepaid Electricity Customers Yes No 57 2 Fig 5.11 Reports of Tampering by Prepaid Electricity Customers 97% of respondents confirmed that some prepaid electricity customers tamper with their meters (fig 5.11).
This implies that the issue of tampering remains a challenge even in the prepaid system which is supposedly tamper proof. Table 5.12 frequency of customer complaints about faulty meters. Very frequently Not Often Other opinions 35 24 0 Fig5.12 frequency of customer complaints about faulty meters. Referring to fig 5.12, 1.
59% of the respondents are of the view that ECG receives complaints about faulty meters very frequently 2. 41% think otherwise. This result however confirms that some of the meters installed at consumers’ premises are faulty. Fig 5.13 meter type preferred by the respondents (staff of ECG) Analysis of and Findings from Customers’ Opinions Table 5.13 Age range of respondents Age Range 18-25 26-35 36-45 46-60 Number of respondents 60 19 12 3 Fig 5.14 Age range of respondents Fig 5.14 shows that 1.
60% of the respondents are within the 18-25 age range. 2. 20% are 26-35 years old 3. 13% are within the 36-45 age range and 4. 3% are 46-60 years old. Table 5.14 Familiarity with Prepaid Meters Yes No 82 12 Fig 5.15 1.
87% of the respondents affirmed that they know of prepaid meters. 2. The remaining 13% do not know of prepaid meters. Table 5.15 Customers’ Experience of How Prepaid Meter Works Yes No 82 12 Fig 5.16 1. 96% of the respondents confirmed that they have experienced the use of prepaid meters.
2. The remaining 4% had not experienced how prepaid meters work. This means that the opinions expressed are reliable. Table 5.16 How Prepaid Meters Affect Energy Conservation Agree Strongly Agree Disagree Strongly disagree 50 40 3 1 Fig 5.17 1. 96% of the respondents agree and strongly agree that prepaid meters have made them more conscious of energy conservation practices 2. The remaining 4% disagree and strongly disagree that prepaid meters contribute to energy conservation awareness This means that the introduction of prepaid meters has encouraged energy conservation.
Table 5.17 Customers’ Ability to Manage and Control Electricity Consumption in the Prepaid System Agree Strongly Agree Disagree Strongly disagree 49 38 7 0 Fig 5.18 92% of the respondents affirmed that the use of prepaid meters has made it possible for them to manage and control the amount of electricity consumed within a period of time. Table 5.18 Ability of Prepaid Meters to Reduce Customer Dissatisfaction with Bills Agree Strongly Agree Disagree Strongly disagree 52 16 21 5 Fig 5.19From Fig 5.19, 1. 72% of the respondents agree and strongly agree that the use of prepaid meters has greatly reduced any disagreement they have with ECG over their bills. 2.
The remaining 28% disagree and strongly disagree to this assertion. Table 5.19 Sufficiency and Effectiveness of Vending Stations Agree Strongly Agree Disagree Strongly disagree 52 16 21 5 . Fig 20 1. 52% of the respondents agree and strongly agree that the vending stations are enough and are able to serve them effectively. 2. The remaining 48% disagree and strongly disagree.
Table 5.20 A Measure of the Ability of Respondents to fairly compare the prepaid meter and the post-paid meter Yes No 88 6 Fig5. 21 94% of the respondents confirmed that they have used both prepaid and post-paid meters. This implies that most of the respondents have enough knowledge about both meters to be able to fairly compare the two meter types. Table 5.21 Respondents’ view on the cost of electricity in the post-payment and prepayment systems whether they are the same for same amount of energy used.
Agree Strongly Agree Disagree Strongly disagree 17 4 26 47 Fig 5.22 1. 75% of the respondents disagree and strongly disagree that the amount of money they pay for a quantity of electricity used is independent of the type of meter they use. 2. Most are of the view that purchasing electricity in the prepaid system is more expensive than in the post-paid system while a few think otherwise 3.
The remaining 25% think that the amount of money paid for electricity is independent of the type of meter used. Table 5.22 Attitude of ECG towards complaints about faulty meters Agree Strongly Agree Disagree Strongly disagree No experience of Faulty Meters 15 4 42 22 11 Fig 5.23 1. 68% of the respondents disagree and strongly disagree that ECG is quick to address complaints about faulty meters (prepaid). 2.
12% of the respondents did not give their opinions on this matter because their meters had never been faulty. 3. The remaining 20% agree and strongly agree that ECG quickly addresses faulty meters. 5.23 Availability of Prepaid Electricity Vendors at All Times Agree Strongly Agree Disagree Strongly disagree 27 13 47 7 Fig 5.24 1.
57% of the respondents disagree and strongly disagree that vendors of prepaid electricity are available at all times (Fig5.24). 2. The remaining 43% agree and strongly agree that vendors are available at all times. Table 5.24 Ease of prepayment meter acquisition Agree Strongly Agree Disagree Strongly disagree 29 9 39 17 Fig 5.25 Referring to fig 5.25, 1.
54% of the respondents affirm that the processes involved in acquiring prepaid meters for a home or workplace are neither simple nor easy. 2. The remaining 46% agree and strongly agree that the procedure of acquiring prepaid meters is easy and simple. Table 5.25 Prepaid meters compared to credit meters in terms of convenience Agree Strongly Agree Disagree Strongly disagree 41 25 21 7 Fig 5.26 1. 71% of the respondents (fig 5.26) agree and strongly agree that prepaid meters are more convenient than post-paid meters. 2.
The remaining 29% disagree and strongly disagree with this assertion. Fig 5.27 1. 72% of the respondents prefer prepaid meters to post-paid meters. 2. The remaining 28% prefer post-paid meters to prepaid meters.
Findings from analysis of quantitative dataIn this Chapter, we shall have a look at; 1. Introduction 2. Analysis of revenue acquired from prepayment customers in the Ashanti Region 3. Findings from analysis of revenue acquired from the prepayment system customers of Eastern Region 4. Comparison of the revenue generation capability of the prepaid meter and post-paid meter using revenue data from Ashanti Region IntroductionThis section contains the documentation of results obtained from analysis of data obtained on revenue from the MIS office of Ashanti SBU. Analysis of revenue acquired from prepayment customers in the Ashanti RegionThe table below shows the prepaid customer base, total revenue generated from the prepayment system and the revenue generated per capita.
The chart depicts the increase in revenue over a period of 4 years (2005-2008). Table 5.26 Ashanti SBU revenue data Year Total Number of Prepaid Customers Total Revenue from Prepayment System Revenue Per Head 2006 53088 6925385.455 130.4510521 2007 71772 10406462 144.99334 2008 94412 18904587.78 200.2350102 2009 105128 23301366.62 221.6475784 2010 107748 33264063.3 308.720935 2011 109285 39651786.45 362.8291756 2012 110461.6667 42080735.74 380.9532937 2013 110139 43129668.11 391.5930607 2014 112432 55843216.3 496.684363 2015 165294 77186240.27 466.9633518 2016 237093 98529264.25 415.5722196 Of which the period of 2006-2008 was extracted, then the below data was obtained Year Total Number of Prepaid Customers Total Revenue from Prepayment System Per capita revenue 2006 53088 6,925,385.46 130.45 2007 71772 10,406,462.00 144.99 2008 94412 18,904,587.78 200.24 Fig 5.28 Results from an excel analysis showed that the revenue per head earned by the Ashanti SBU over a 3 year period (2006-2008) increased by 61% using 2006 as the base year. Findings from analysis of revenue acquired from the prepayment system customers of Eastern RegionThe table below shows prepaid customer base, revenue ECG has earned from the prepayment system over a 10 year period (2006-2016). Table 5.27 Prepaid Customer Revenue Data (Eastern Region) Year Total Number of Prepaid Customers Net Revenue from Prepayment Revenue Per Prepaid Customer 2006 7,929 483,338.70 60.95834279 2007 18,739 1,651,708.98 88.14285608 2008 22,222 3,624,831.06 163.1190289 2009 26,846 4,820,329.36 179.5548447 2010 28,111 7,861,409.19 279.6559777 2011 36,437 11,343,266.48 311.3117567 2012 34,764 14,299,804.51 411.3394463 2013 51,129 18,971,926.02 371.0599859 2014 58,031 31,828,144.09 548.4679583 2015 64,933 34,909,186.03 537.6185611 2016 71,603 63,778,042.71 890.7174659 Year Total Number of Prepaid Customers Net Revenue from Prepayment Revenue Per Prepaid Customer 2006 7,929 483,338.70 60.95834279 2007 18,739 1,651,708.98 88.14285608 2008 22,222 3,624,831.06 163.1190289 Of which the period of 2006-2008 was extracted, then the below data was obtained.
Fig 5.27 The revenue per head earned by Eastern Region over a 3 year study period (2006-2008) increased by 47% using 2006 as the base year in an excel analysis. Comparison of the revenue generation capability of the prepaid meter and post-paid meter using revenue data from Ashanti Region.The revenue per customer generated from NSLT post-paid customers and prepaid customers from 2006 to 2008 are compared using a chart. The table below shows the revenue data of the post-paid system. Year Per Capita Revenue-Eastern Region Per Capita Revenue-Ashanti 2006 60.95834279 130.45 2007 88.14285608 144.99 2008 163.1190289 200.24 Fig 5.28 Figure 5.29 is a compressed table of the raw data collected from the MIS office Table 5.29 Revenue from post-payment system of Ashanti SBU Fig 5.30 Comparison of revenue generation ability of prepaid and post-paid meters of Ashanti SBU Year Post-paid Customer Base(NSLT) Post-paid Customer Base(SLT+NSLT) Post-paid Revenue(SLT) Post-paid Revenue(NSLT+SLT) Revenue per NSLT Customer 2006 141631 167436 29633640.59 35179258.79 39.15539818 2007 148713 181932 29063374.3 34800220.32 38.57662757 2008 151113 196891 49530669.62 59046074.32 62.96880282 1. Fig 5.30 compares the per head values of revenue the Ashanti SBU collected from customers from 2006-2008. 2.
The graph depicts that revenue per head in the post-paid system is higher than in the prepaid system. 3. The grey bar shows revenue collected per head for SLT and NSLT (Post-payment System). 4. The orange bar shows the revenue collected per head in the post-payment system without input from SLT customers (Special load tariff customers such as industries). At the end of the 3 year period, Revenue per NSLT post-paid customer increased by 61% Revenue per prepaid customer increased by 53% 6.
ConclusionsPrepaid meters are effective at collection of revenue since they eliminate debts owed to the utility provider (Electricity Company of Ghana) and eliminate expenditure associated with meter reading, printing of bills and distribution of bills. Per capita revenue generated from the prepayment system is higher than that of the post-payment system within the study period. The percentage increase in revenue per NSLT customer over the study period (2006-2008) in Ashanti Region was 61% while the percentage increase per prepaid customer is 53%. This implies that the per capita revenue of the post-paid system increased by 8% more than that of the prepaid system.
This is because some customers tamper with their prepaid meters and some of the prepaid meters are faulty. These lead to loss of revenue in the prepayment system. Besides, consumers have total control over the amount of energy they use and therefore consciously take steps to avoid high energy consumption. Generally, pre-paid meters are preferred over post-paid meters by customers due to the fact that the prepayment system gives customers control over energy consumption. 7. ReferencesB. Kelsey, J. and Smith, G. (2016) Charging Ahead: Prepaid Electricity Metering in South Africa. M. Wambua, A., Kihara, P. and K. Mwenemeru, H. (2016) Adoption of Prepaid Metering System and Customer Satisfaction in Nairobi County , Kenya. Tewari, D.D. and Shah, T. (2003) energy policy 31 (2003) 911-927 Ontomwa, R. (2014) Effects of Prepaid Electricity Billing on Revenue Collection Costs at Kenya Power Company. http://www.ecgonline.info/index.php/our-history.htmlBaneseh, M. (2014) ECG loses $350 million yearly, IFC report. Retrieved from http://www.graphic.com.gh/news/ecg-loses-350million-yearly-ifc-report.htmlhttp://www.modernghana.com/news/news/535336/0/more-people-stealing-power-9537-illegal-connection.htmlEffah, E. and Bediako, K.O. (2014) Evolution and Efficiencies of Energy Metering Technologies in Ghana. Asante, E. (2014), Benefits and Challenges of ECG Prepaid Metering. Retrieved from http://www.graphic.com.gh/features/opinions/benefits-and-challenges-of-ecg-prepaid-metering.html . Ropa, D. (2015) a Study of the Impact of the Use of Prepaid Electricity Meter on Revenue Generation at ZETDC. Ogujor, E.A. and P. O. Otasowie, 2010.The Impact of the Pre-paid Meter on Revenue Generation in Nigeria. Pacific Journal of Science and Technology.11 (1):138-142. Mushi, P.D. (2014) Effectiveness of Prepaid Metering in Revenue Collection: A case at TANESCO. Ganiyu, A.A. (2015) Impact of Electricity Prepaid Energy Metering System on Electricity Consumption in Ogbomoso South Local Government Area of Oyo State. Bhavan N. (2003) Energy Meter http://www.ecgonline.info/index.php/types-of-meters.htmlChaleuvong, K. (2009) Data Collection Techniques. https://www.statpac.com/survey/sampling8. Appendix A. Response to questionnaires Collected from ECG staff B. Data Collected from Questionnaires Distributed to ECG Customers C. Record of Quantitative Data 8.A Response to Questionnaires Collected From ECG StaffWhat is your employment category at ECG? A Top level Manager B Middle level Manager C Supervisory manager D Technical staff E Non-technical staff Options ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 1 0 0 0 1 0 2 B 0 2 1 0 2 0 5 C 2 1 1 16 3 1 23 D 4 4 5 0 5 1 19 E 2 3 1 0 3 0 9 Total number of responses 59 2. What billing system(s) does ECG use currently? A Prepaid B Post-paid C Both Options ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 0 0 0 0 7 0 7 B 0 1 1 0 0 0 2 C 9 9 7 16 7 2 52 3. Which the following are steps taken by ECG in billing post-paid electricity consumers? A Meter reading B Production and printing of bills C Distribution of bills D Others Options ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 8 8 7 16 14 2 55 B 5 3 1 16 4 1 30 C 4 3 1 16 4 1 29 D 0 0 0 0 4 0 4 4. Are post-paid energy meters installed in locations that are easily accessible to meter readers always? A Yes B No C Other views Options ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 4 4 3 15 11 2 39 B 4 4 3 0 2 0 13 C 1 2 2 1 1 0 7 The opinion corresponding to option C is ‘ Not always’ 5. Consumers are available …………to make meters accessible to meter readers. A Always B Sometimes C Never D Other opinions Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 2 9 1 14 4 0 30 B 7 0 6 2 10 2 27 C 0 1 0 0 0 0 1 D 0 0 1 0 0 0 1 Consumers need not be present for their meters to be read. 6. Some ECG customers are located at places that are very far from the nearest ECG branch office. A True B False Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 9 9 6 16 14 2 56 B 0 1 2 0 0 0 3 7. Which of the steps involved in billing has the greatest cost? A. Meter reading B Production and Printing of bills C Distribution of bills D other opinions Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 2 2 1 0 4 0 9 B 5 7 6 16 5 2 41 C 0 0 0 0 5 0 5 D 2 1 1 0 0 0 4 The view that all steps are involved. 8. Which of the following factors contribute to revenue loss? A Illegal connection B Meter inaccuraciesC Tampering C other factors Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 7 10 7 16 14 2 56 B 4 1 2 16 2 0 25 C 2 2 4 16 3 0 27 D 0 0 0 16 0 0 16 9. Do customers of the post-paid billing system willingly pay their bills? A Yes B No Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 5 9 4 0 7 0 25 B 4 1 4 16 7 2 34 10. What is (are) the main reason(s) behind the introduction of prepaid meters by ECG? A Reduction of cost involved in billing B Elimination of debts owed by customers C Reduction of customer dissatisfaction with billing D other reasons Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 2 2 1 16 7 0 28 B 8 4 4 16 7 2 39 C 1 7 5 16 7 0 38 D 0 0 0 0 0 0 0 11. Has the introduction of prepaid meters been able to overcome the challenges of the post-paid system? A Yes B No C Other opinions Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 6 7 6 16 7 2 44 B 2 1 2 0 7 0 12 C 1 2 0 0 0 0 3 The other opinions include ‘Not entirely’ and no because of the challenges associated with the type and quality of prepaid meters used. 12. If the first option was chosen, specify the extent to which prepaid meters have been able to deal with the challenges of the post-paid system. A Completely B Partially C Other opinions Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 2 1 2 16 4 1 26 B 7 9 6 0 10 1 33 C 0 0 0 0 0 0 0 13. Have there been reports of tampering by prepaid electricity consumers? A Yes B No Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 8 9 8 16 14 2 57 B 1 1 0 0 0 0 2 14. How frequently does ECG receive complaints from consumers concerning faulty meters? A Very frequently B Not often C Other opinions Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 8 9 4 0 13 1 35 B 1 1 4 16 1 1 24 C 0 0 0 0 0 0 0 15. In your opinion, which of the two billing systems is better considering the challenges associated with both? A Prepaid B Post-paid C Other opinions Option ECG DISTRICT AbuakwaAsokwaSoameDan NyameAyigyaAkyem TafoTotal A 9 10 8 16 14 2 59 B 0 0 0 0 0 0 C 0 0 0 0 0 0 8.B Data Collected from Questionnaires Distributed to ECG CustomersWhich of the following age ranges do you belong to? 18-25 26-35 36-45 46-60 60 19 12 3 Do you have knowledge of prepaid electricity meters? Yes No 82 12 Have you experienced the use of prepaid electricity meters? Yes No 90 4 Prepaid meters make customers more conscious of saving energy and not wasting it. Agree Strongly Agree Disagree Strongly Disagree 50 40 3 1 5. Prepaid meters enable customers to manage and control their electricity consumption. Agree Strongly Agree Disagree Strongly Disagree 49 38 7 0 6. The use of prepaid meters has greatly reduced the disputes customers have with the electricity company of Ghana (ECG) over bill Agree Strongly Agree Disagree Strongly Disagree 52 16 21 5 Based on your experience at prepaid electricity vending stations when purchasing electricity, the number of vending stations are enough and are able to serve customers effectively. Agree Strongly Agree Disagree Strongly Disagree 31 9 37 17 Have you experienced how both post-paid and prepaid meters work? Yes No 88 6 Whether customers use post-paid meters or prepaid meters, they pay the same amount of money for the same power usage. Agree Strongly Agree Disagree Strongly Disagree 17 4 26 47 ECG addresses issues related to faulty meters very quickly after receiving a complaint. Agree Strongly Agree Disagree Strongly Disagree 15 4 42 22 11 customers had not had their meters being faulty Based on your experience at a prepaid electricity vending station, the number of prepaid electricity vending stations are sufficient and serve customers quickly. Agree Strongly Agree Disagree Strongly Disagree 36 7 38 13 Vendors of prepaid electricity are available at all times to serve prepaid customers Agree Strongly Agree Disagree Strongly Disagree 27 13 47 7 Customers pass through a simple and easy process to obtain prepaid meters for their homes and workplace Agree Strongly Agree Disagree Strongly Disagree 29 9 39 17 Prepaid meters are a lot more convenient than post- paid meters. Agree Strongly Agree Disagree Strongly Disagree 41 25 21 7 If you are given the option to choose between prepaid and post -paid meters, which of them will you choose to use. Pre-paid Post-paid 68 26 Please give a brief explanation to why you will choose one of the meters over the other. Main Reasons Given for Preference of A Meter Type Prepaid Post-paid -Ability to control electricity usage -Elimination of confrontations with utility provider – Elimination of incorrect billing and overbilling by utility provider -Absence of disconnection and reconnection issues -Saves time and money -Enhances wise energy use Convenient -Cost of energy is moderate -Access to electricity at all times (Use before you pay) -Post-paid electricity being more convenient for work that requires continuous electricity supply -Avoiding long queues to purchase electricity 8.C Record of Quantitative DataAshanti SBU Year Prepayment Customer Number Prepayment Revenue NSLT Customer Population NSLT Revenue SLT Customer Population SLT Revenue Debts Owed to ECG 2006 53,088 6652565.03 141631 29,633,640.59 21 5,545,618.20 250639.05 2007 71,772 9703384.32 148713 29,063,374.25 22 5,736,846.02 921010.76 2008 94,412 18740481.26 151113 49,530,669.62 23 9,515,404.70 527098.09 2009 105,128 23597854.8 156226 48,280,708.41 24 10,197,964.83 527098.09 2010 107,748 33912281.7 167411 61,303,219.96 25 17,120,573.16 559595.97 2011 109,285 39741372.48 181902 89,175,591.92 30 24,864,089.20 677666.7 2012 110,462 41659765.02 196856 108,117,406.54 35 25,918,237.43 1322357.88 2013 110,139 42562671.99 216542 124,092,313.40 37 29,154,039.56 1393790.01 2014 112,432 57546462.31 238473 230,143,348.37 176 64,671,376.25 1727599.36 2015 165,294 77,186,240.27 242,944,092.81 21 82,251,988.14 2016 237,093 98,529,264.25 363,283,922.12 22 100,626,999.87 Eastern Region Year Prepayment Revenue Total Prepaid Customers NSLT Revenue SLT Revenue 2006 483,338.70 7,929 9,621,402.90 1,234,450.30 2007 1,651,708.98 18,739 9,345,170.93 1,416,016.86 2008 3,624,831.06 22,222 14,961,019.05 2,312,121.09 2009 4,820,329.36 26,846 15,473,960.99 2,314,123.58 2010 7,861,409.19 28,111 20,120,353.38 3,433,114.85 2011 11,343,266.48 36,437 26,846,263.48 4,197,804.88 2012 14,299,804.51 34,764 31,755,716.71 4,642,303.54 2013 18,971,926.02 51,129 37,318,184.32 6,956,489.26 2014 31,828,144.09 58,031 63,323,592.25 11,569,614.20 2015 34,909,186.03 64,933 68,409,205.31 16,390,461.36 2016 63,778,042.71 71,603 109,250,027.18 21,819,791.31
