For some time the Guyana Power & Light Company has been advising stakeholders of its intention to change to pre-paid meters. The Guyana Consumers Association expressed concern on behalf of consumers and received an explanation from Mr Bharat Dindyal, Chief Executive Officer, (acting). GCA wishes to share this information with all consumers in order to remove any fears that may exist. This is the first instalment.
“Thank you for allowing me this opportunity to clarify the concerns you have raised regarding pre-paid metering. You may recall that your organization was invited to a stakeholder presentation in December 2006 on our new ITRON meters (introduced last year) and pre-paid metering technology that we are pursuing. The concerns/questions you are raising now were comprehensively addressed at the presentation. I will however endeavour to provide the explanations you seek.
“1. The use of pre-paid technology is widespread in the telecommunications sector. You would know that most cell phone users use a pre-paid service. No interest is paid by the service providers despite a significant element of their cost falling due after they would have provided service.
“In GPL’s case we have to purchase fuel, cash in advance, and that is about 80% of our cost.
“2. GPL is in the process of procuring a modern Customer Information System which should be commissioned by the third quarter of 2009. Pre-paid technology does not require the billing system to compute a bill. It basically sells you power based on your tariff category and the amount of your purchase. If your tariff rate is $10 and you want to purchase $1,000 of electricity you get 100 units.
“Since the process involves no meter reading, no bill preparation, etc, it is more accounting than billing. In fact the customer would only be concerned that the billing system is applying the correct tariff for their purchase.
“When the customer makes a purchase a unique code is printed on a receipt (similar to a lotto receipt). This code is unique to that customer and if it is lost the customer simply calls GPL and the code is provided to them again. The code is entered using a key pad on a display unit in the customer’s home which then activates the electricity meter on GPL’s pole. The meter will provide power until the amount of power purchased is exhausted. The power will then be disconnected automatically by the meter.
“The meter has a number of features which can be accessed by the customer from the display located conveniently in their home. They will be alerted when their purchase (credit) will be exhausted based on his rate of use. Alarms will indicate when their credit is about to finish and one can even choose to have the meter control their electricity use so that their monthly use is say $5,000 a month.
“Each customer’s pre-paid meter will therefore deliver to them the value of their purchase in kwh and since the meter would be fully electronic it would remain accurate at better then 99.8% for life.
“3. There is no time limit to utilize a purchase. It will be utilized at the customer’s convenience. The system will allow relatives overseas to purchase electricity for their loved ones here, on-line, and that credit can be used anytime.
“4. Pre-paid technology is in widespread use in South Africa, Argentina, Colombia, etc. In fact in South Africa pre-paid metering is used as a standard in all areas now receiving electricity.
“We find this technology particularly attractive as customers don’t have to contend with meter readers, bills arriving late, payments made to our agencies not remitted on time, estimated readings when they are overseas or not at home and of course the disconnection crews. You don’t have to line up to pay your bills as you can purchase electricity from thousands of vendors country-wide. The positives far outweigh the single negative of having to pre-pay.”
