Attitude of Consumer towards Prepaid Meters

Abstract

A prepayment metering system is a system of “pay as you use” system of buying/selling electricity. It does not limit itself with prepayment meter only, rather it is a complete different system of revenue cycle management from “meter to cash” cycle. It gives a control over revenue for DISCOM and over electricity budget for consumer. Thus it is a win-win situation for both supplier and user. However, it has its own pros and cons as discussed in detail in this study.

While most conventional method of metering is standard post paid system of metering, pre-paid has its own advantage for both supplier as well as consumer. However, these advantages are not without riders. Firstly the Prepaid system has a relatively high infrastructure cost. Then the ownership of prepaid meter to be with consumer or utility is still debatable. And merely replacing existing standard meters with prepaid meters will not help the cause since it requires:

- Service Level Agreement with consumers, - Instilling a sense of trust in the system through proper education and training, - Designing convenience into the system for consumers as regards operation, recharge, information gathering etc. - Focus on customer delight by means of schemes like gift coupons of retail outlets. The biggest hurdle in prepayment is “Why should you pay in advance when you do not get your salary in advance”. The study conducted here answers this question in a convincing manner.

Keywords: Prepaid meters, Post paid meters, service level agreement, vending system

JEL Classification: MRN