Eskom has already seen a ZAR39 million improvement of revenue collection in Soweto over a year-long period after it installed and converted customers to split prepaid meters.
The figure is cumulative from the 2014/15 financial year up to 30 June 2016.
The revenue collection levels for customers – including Large Power Users (LPU), Prepaid Power Users (PPU) and Small Power Users (SPU) and excluding bulk suppliers – are currently at 48%.
Soweto has approximately 181 000 customers, about 65% of whom are customers who are on conventionally-billed metering system and the remainder are on conventional prepaid metering system.
We have installed over 41 628 split meters and converted 24 746 to prepaid and are planning to accelerate the roll out of prepaid meters in Soweto.
The conversions of the meters have also resulted in a gradual increase in sales.
Eskom is currently installing prepaid meters in Sandton, Midrand, Soweto, Kagiso and other areas around Gauteng.
This is in order to enable revenue collection and address Eskom’s debt collection challenges.
In Sandton and Midrand alone, Eskom connected close to 14 700 meters from March 2016 to date.
The company aims to complete the installation of 32 000 prepaid meters in Sandton and Midrand by end of March 2017
Eskom has started installing smart meters in Sandton and Midrand‚ with 5‚932 meters installed between January and March this year.
The conversions of the meters to prepayment will resume in July‚ once Eskom has upgraded its online vending system‚ the power utility says.
Eskom has made a strategic decision to convert all of its conventionally billed customers to prepaid meters.
It says this project will enhance its revenue which is an important focus area to support its financial sustainability efforts.
“Customers are encouraged to convert from their conventional meters to the prepaid billing mode as it has several benefits such as improved reliability‚ reduction of public safety incidents and better management of energy consumption. More importantly‚ the days of billing errors will be a thing of the past‚” the electricity provider says.
In Sandton and Midrand‚ the plan is to have all 32‚885 of its domestic customers with smart meters installed and converted to prepaid meters by the end of the 2016/17 financial year.
“In Soweto we have installed over 40‚000 split prepaid meters and converted over 13‚000 to prepaid mode. Consequently‚ Eskom has already seen a R33.63-million improvement of revenue collection in Soweto after it installed and converted customers to split prepaid meters. The figure is cumulative from July 2014 up to 28 February 2016.”