Benefits of A Prepayment System • Elimination of connection and disconnection costs • Improved cash flow – Electricity paid for before use. • Consumer can budget and manage his electricity more effectively. • No re-connection fees • No deposit required • No meter reading necessary • Reduced billing cost (Printing & mailing) • Convenience of electricity purchases • No more billing estimates • Will pay for used power only • Improved security of buildings Problems Associated with Conventional Prepayment Meters • Single-Purpose-Built Prepayment Meters regularly develop faults when compared to conventional smart meters – Must be sent back to manufacturer for repairs or scrapped, generating additional costs or new equipment purchases • Power theft becomes paramount – People find ways to beat system • Small constant purchases • Bridging of meters Problems Associated with Prepaid Meters • Power theft increases losses which force increases of tariffs to compensate -– All rate-payers lose – More customer revolt • • Prepaid meters are stolen or deliberately destroyed in some areas Lack of trained staff has cost some Municipalities dearly – In some instances staff is trained but not managed properly, so system does not get managed properly, causing damage and service disruptions • • Maintenance in prepaid meter deployed areas is much higher Prepaid meters require more maintenance Problems Associated with Prepaid Meters • Regular inspections have to be carried out on metering installations – Auditing prepayment systems downloads – Checking for bridged-out meters – Not temper proof and cannot be monitored easily • Return on investment for prepaid meters is non-existent in some areas – When units of 80kWh are used, income and profit are so small it cannot even pay off the prepaid equipment loan • • Changing technology makes prepaid meters out of date too soon and in many cases prepaid systems have been changed due to new requirements by the consumer and government -- such as free basic electricity Rate-payers expect more tariff flexibility with prepaid meters – more trained customer service staff are required to cope with these new requests Problems Associated With Prepaid Meters • Paying power vendors - costs the municipality did not have before -- vary between 3% and 6% • Prepayment system must be administered on a daily basis • Customer tariffs have to cover up to three times more in capital outlay for a prepayment system than on a conventional system TWU’s Approach To Prepayment Plan Customers • The short-sighted deployment of prepaid meters will simply create additional CapEx losses as they are targeted by increasingly irate consumers. • There can be no distinction between any smart meter deployed, regardless of its consumer account configuration (a matter to be left to software programming in the central energy management system). – If a power theft is detected then all adjoining (subordinate and supercedent) user connections can be suspended until the thief is identified and the theft rectified. TWU’s Approach To Prepayment Plan Customers • Smart grid applications are needed to make the local power distribution grid self-aware – Capable of detecting and shutting down illegal connections without the physical intervention of outside plant personnel. – Remote monitoring, – Distribution automation sensors, and – Smart meters – Fully integrated over a broadband network by a dedicated local energy distribution management system • Precluding implication of outside plant personnel in power theft. Who Is TWU? • South African BEE Company • National ECNS & ECS Licences in SA – Will Acquire Similar Licences in Zimbabwe • Experienced Management Team – World-class Telecom / AMI partners • World-class Technology Solutions • Committed to Customer Satisfaction 9 TWU’s ROLE • Provide Internet access services, along with payas-you-go business-to-business services • Procure, implement, and operate a wholesale local fulfillment service for all cellular network carriers offering mobile calls in ZESA Zimbabwe metro area • Provide no-cost metro, and low-cost national VoIP calls to all ZESA Zimbabwe metro customer sites 10 BENEFITS • TWU Responsibilities: – Technology Procurement – Implementation – Interoperable Management • Three Separate Management Systems • TWU Charges on a Pay-as-Used Basis for All Managed Services 11