Abstract
Introduction
Along with credit metering, prepayment metering is moving into a new phase and is widely seen as a metering technology of the future. Prepayment metering is a small segment of the electricity, gas and water metering market, with 20 million end points installed worldwide. Prepayment metering has been in existence for about a century and is now moving into new realms of technology. The technology offers considerable benefits to both utilities and consumers and its growth is consistent with the advent of AMI technology. ' Split' meters, with a keypad in the user' s home and a control unit in a remote secure location provides the means for fraud prevention and two-way communication between the meter and the energy supplier, as well as AMI functionality. Despite initial opposition to the concept in some quarters, whenever it has been introduced it has been well accepted by consumers who react positively to its benefits. The criticism has been from politicised areas, where it has been a convenient target for activists against utilities. Their argument and criticisms do not correspond with the experiences of the actual users of prepayment meters. Prepayment metering was first established in the UK about 100 years ago. It was launched in the early 1990s in South Africa with a national roll-out when the decision was taken to expand the level of electrification, and where it has been an outstanding success. More recently it has been launched in China, which is now the largest prepayment metering market. Many other countries, especially in the developing world are looking at the South African experience and regard it as a model of success.
Report Scope
- The report analyses the major prepayment metering markets; UK and South Africa, and in less detail, China and Turkey
- 38 other markets with experience of prepayment metering are identified
- Benefits and problems are outlined
- Market drivers are identified
- The report analyses the development and current status of the different prepayment technologies, together with commentary on future likely developments
- Prepayment meter manufacturers are identified, with major products and technologies
Table of Contents
1. Executive Summary
- Prepayment meter deployments
- Types, technology and operation
- Costs
- Companies
- Socio-political factors and consumer acceptance
- Disadvantages for the consumer
- Benefits for the supplier
- Disadvantages for the supplier
2. Prepayment meter sector
- Global deployment
- Market factors and drivers
- Benefits of Prepaid Meters
- Improved operational efficiencies
- Reduced financial risks
- Better customer service
- Customer control
- Market Drivers
- Power sector reforms
- Non-payment of bills
- Avoidance of disconnection
- Increasing non-technical losses
- Opportunities in the emerging electrifying markets
- Market Restraints
- Consumer behaviour
- Initial investment
- Rapid technology changes
- Uncertainty over success
- History of technology development
- 1st Generation - Magnetic card/token
- Smart key
- Smart card
- 2nd generation - Key pad
- 3rd generation split meters with remote two-way communication
3. United Kingdom
- Incidence of use of PPMs
- Electricity and gas PPMs
- PPM technologies in the UK
- Magnetic card/token
- Key
- Smart card
- Key pad
- Infrastructure and payment outlets
- UK market shares, prepayment meters
- Prepayment meter costs
- Cost of meters
- User costs
- Additional supplier costs
- Northern Ireland
- Republic of Ireland
4. South Africa
- Electricity prepayment metering
- Water prepayment metering
- Review of the development of the South African prepayment system
- New generation prepayment meters
- The prepayment technology, principles of operation
- Functioning of prepayment technology
- The development of CVS and STS
- CVS, Common Vending System
- STS, Standard Transfer Specification
- STS Association
- Costs of electricity
- Costs of prepaid electricity
- Tariff for low usage residential customers
- Tariff for medium to high-usage residential customers
- Tariff for small businesses in urban areas
- Tariff for farmers and rural businesses
- Advantages and disadvantages of prepaid electricity to different
stakeholders
- Eskom
- Advantages to consumers
- Disadvantages to Eskom
- Disadvantages to consumers
- Factors affecting the success of prepaid electricity and impediments to
expansion of the system in South Africa
- Better planning and management
- Impediments to the expansion of prepaid electricity
- Brief assessment of the expansion of prepaid electricity
- Lessons learned
- Lesson 1: Benefits to large masses of small and dispersed consumers
- Lesson 2: Benefits for consumers
- Lesson 3: Benefits for Eskom
- Lesson 4: Role of advertising and initial subsidy in popularising prepaid electricity
- Lesson 5: Prepayment is not necessarily a well-received innovation in all segments of society
- Lesson 6: Cost of prepaid electricity
5. China
- Turkey
6. Prepayment Metering in Selected Countries
- Americas
- USA
- Prepayment and US regulation
- Regulatory Changes
- Argentina
- Merlo
- Brazil
- Columbia
- Curacao
- Honduras
- Europe
- Belgium
- Czech Republic
- France
- Poland
- CIS
- Azerbaijan
- Middle East
- Abu Dhabi
- Iran
- Mahgreb
- Egypt
- Morocco
- Africa
- Botswana
- Côte d' Ivoire
- Gabon
- Kenya
- Lesotho
- Mozambique
- Namibia
- Nigeria
- Rwanda
- Swaziland
- Sudan
- Tanzania
- Zambia
- Asia Pacific
- Bangladesh
- India
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Australia
- New Zealand
- Pohnpei
7. Prepayment meter manufacturers
- United Kingdom
- Bayard/Ampy/Landis & Gyr
- Landis & Gyr
- Cashpower system
- Quantum system
- Libra system
- Libra - PayPoint System
- Ampy
- Actaris
- PRI Liberty meter
- South Africa
- Conlog
- Powerhouse solar prepayment meter
- Ultima system
- Bambamanzi Water Meters
- Actaris
- Atlantic Meters (Pty) Ltd
- Syntell
- Bateman
- China
- India
- Malaysia
- Malaysian Intelligence Meters
- Metronix
- Turkey
- Elektromed Ltd
- EAS Elektronik San Tic
- Development of the technology of prepayment meters
- Coin meters
- Early card or ticket meters
- Later magnetic card meters
- Smart token meters
- Keypad meters
- Split meters and two-way communication
- Consumer requirements
- The Internet
- Complex tariffs
- Consumer loyalty
- Utility requirements
- Super monitoring
- Multi-utility prepayment
- Multifunctional systems
- Glossary of Prepayment Metering Terms
- Acknowledgements
Tables
- Table 2.1: Global installed base of prepayment meters, 2007
- Table 3.1: Market shares of meter suppliers in the UK
- Table 3.2: UK shares of supply for prepayment meters by technology
- Table 3.3: PPM costs by technology
Figures
- Figure 2.1: Mechanical prepayment meter, 1920
- Figure 2.2: Landis & Gyr Taurus split prepayment meter
- Figure 2.3: Meter keypad and remote control unit
- Figure 4.1: Cumulative connections since 1994
- Figure 4.2: Eskom mainframe information system
