A study of the impact of the use of prepaid electricity meters on revenue generation at Zimbabwe Electricity Transmission and Distribution Company (ZETDC)

Abstract

This study explored the impact of the use of prepaid meters on revenue generation of ZETDC. Quantitative research methods were employed in the study and a random sample of 108 managers was selected from a population of 120 managers at ZETDC. Questionnaires were the main instrument of data collection. It was established in the study that overally the introduction of prepaid electricity meters aided revenue generation at ZETDC. The prepaid metering system was said to be more beneficial to the consumer than being of a disadvantage. Major benefits established were that ZETDC was forced to improve consumer welfare as revenue generation depended more on the consumer's consumption of electricity since there were no more estimates, increased consumer control over usage, imposed discipline over consumer budgets, increased consumers' awareness of their energy consumption and easy management of electricity use and payments. Major benefits to ZETDC included reduced overheads, a reduction in the cost of importing electricity, improved revenue generation, easy management of electricity debts and improved servicing of debts by customers. ZETDC is recommended to reduce its workforce in line with the introduction of technology. This should start from the metering personnel most of whom are becoming redundant due to the new technology. This is mainly because the researcher noted in the study that ZETDC's wage bill was not reduced even after the introduction of the prepaid system since the company had not implemented any wage bill cutting measures. This would further reduce overheads and improve the financial position of the company. The researcher proposes that a further study be conducted to evaluate the prepaid billing system from a customer's point of view. This would help in identifying the shortfalls of the system in order to rectify any such challenges.