COMPLETE SCHOOL PROJECT TOPICS & MATERIALS :
CHAPTERS: Chapter 1-5 | DOC FORMAT: MS WORD/PDF | PRICE: ₦5,000

CHAPTER ONE

INTRODUCTION

1.1 Background of the study
Prepaid systems refer to the disbursement made by a consumer for the use of a good or service before consumption. In the case of electricity, the peculiarity of the prepaid system is the inversion of the conventional marketing system: while in the latter, consumers have consumer credit because they pay their energy bills periodically and after consumption, in the system Prepaid credit is not available because energy is purchased and paid for before consumption. Therefore, prepaid systems allow users to consume energy only when they have a credit in the electricity bill, since supply is interrupted when this credit is exhausted Gujor and Otasowie (2010).
The prepaid metering system is a new approach to invoicing in the energy sector which includes a superior electronic customer account management system. Integrate measurement equipment with smart card technology. It not only provides utility but also substantial savings in labor and money, while offering new payment options to customers. It reduces operating costs because it operates a paperless revenue collection system and can replace any electromechanical meter on the market (Hangzhou Pax Electronic Technology, 2012).
Globally, the number of customers who prefer to use prepaid meters has increased. For example, in the UK there is a long tradition of offering optional prepaid measurement for customers. Up to 15-20% of clients have signed up for the option (Chartwell, 2003). Northern Ireland Electricity, which has a user-friendly prepaid system, has increased the number of prepaid registrations to 25% (Energy Watch, 2005). In the Arizona Salt River project, more than 50,000 customers (approximately 6%) use prepaid meters (Chartwell, 2008). In Ontario, Woodstock Hydro reports that 25% of residential customers have chosen to use the prepaid system.
The prepayment technology was initially developed in South Africa in the late 1980s with the objective of supplying energy to a large number of low-income and geographically dispersed users. The system was initially geared to minimizing the difficulties arising from users‘ irregular incomes and to overcoming the limited development of the infrastructure required for the dispatch and reception of credit slips. By the late 1990s, prepayment systems were very popular in India and in some OECD countries (Estacheet al., 2000), and had probably reached their highest development in Great Britain (Waddamset al., 1997). In Argentina, prepayment meters were firstly introduced in 1993, when Energía Mendoza Sociedad del Estado (EMSE) put a few running in small shops at the Mendoza Bus Central Station. The experience was soon extended to other communities in the country.
In line with this, the Nigeria power started prepaid electricity metering in April 2009 on pilot basis. Rollout of the project commenced in March 2011, and by 30th June 2011 a total of 123,000 prepaid meters had been installed throughout the country with a majority of them in Nairobi (Nigeria Power corporate strategic plan 2011/12 to 2015/16). The project hadbeen rolled out to other regions in the country (Nigeria Power, 2011).
Nigeria Power adopted prepaid metering to improve on efficiency, the quality of service offered and also empower customers to control the cost of electricity. When they were introduced, it was expected that the prepaid electricity meters from NPLC would be a relief given the many problems associated with postpaid meters. The postpaid system had been blamed for not returning accounts deposits, consumers having no control over their consumption, unpleasant disconnection, high reconnection fees, corruption during disconnection and reconnection of power and the estimated bills, which would be hilarious for their gross miscalculations were it not for the fact that one had to pay (Kinyoda ,2013) The prepaid meters were believed that would save electricity and be more convenient for consumers.
However most of the prepaid customers are finding it difficult to understand NPLC‘s complex domestic. Tariff (DC), when applied to prepayment due to its stepped nature. According to Nigeria Power Annual Report (2009), the postpaid system has been blamed for very many customer complaints. In addition, energy provision companies are unable to keep track of the changing demand for domestic consumers as some consumers face problems of being invoiced for bills that have already been paid as well as poor reliability of electricity.
An inquest into the success of the electricity prepaid metering in Nigeria has shown that so far, several consumers have complained on limited places where one can buy tokens, delay in purchasing electricity token through mobile phone money transfer, long digits or codes and varying rates of units for the same amount(Nyambega, 2011). A study conducted by Chege (2012) also established various complaints from Nigeria power customers regarding the prepaid meters. Some of the complaints were that pre-paid meters do not give the consumers a breakdown of their consumption, breeding suspicion that it is expensive. This study therefore will seek to Assess the factors limiting the access and use of prepaid meters in Nassarawa state, Nigeria.

1.2 Statement of the Problem
Nigeria Power adopted prepaid metering to improve on efficiency, the quality of service offered and also empower customers to control the cost of electricity. When they were introduced, it was expected that the prepaid electricity meters from NPLC would be a relief given the many problems associated with postpaid meters. The postpaid system had been blamed for withholding customers accounts deposits, consumers having no control over their consumption, unpleasant disconnection, high reconnection fees, corruption during disconnection and reconnection of power and the estimated bills, which would be hilarious for their gross miscalculations were it not for the fact that one had to pay (Kinyoda,2013).

On the other hand prepaid meters, were believed to assist the users save electricity and be more convenient for consumers. However most of the prepaid customers are finding it difficult to understand NPLC‘s complex domestic. Tariff (DC), when applied to prepayment due to its stepped nature. According to Nigeria Power Annual Report (2009), the postpaid system has been blamed for very many customer complaints. In addition, energy provision companies are unable to keep track of the changing demand for domestic consumers as some consumers face problems of being invoiced for bills that have already been paid as well as poor reliability of electricity.
An inquest into the success of the electricity prepaid metering in Nigeria has shown that so far, several consumers have complained on limited places where one can buy tokens, delay in purchasing electricity token through mobile phone money transfer, long digits or codes and varying rates of units for the same amount(Nyambega, 2011). A study conducted by Chege (2012) also established various complaints from Nigeria power customers regarding the prepaid meters. Some of the complaints were that pre-paid meters do not give the consumers a breakdown of their consumption, breeding suspicion that it is expensive. This study therefore will seek to examine the factors limiting the access and use of prepaid meters in Nassarawa state, Nigeria.

1.3 Objectives of the study
The main objective of this study is to assess the factors limiting the access and use of prepaid meters in Nigeria. Specifically, the study sought to:
1. Assess the extent to which power supply reliability influenced the level of adoption of prepaid meter in Nassarawa state.
2. Determine if prepaid meter power supply accessibility influence the level customer adoption in Nassarawa state.
3. Examine the extent to which customer power consumption control of prepaid meter influenced the level customer satisfaction in Nassarawa state?
4. To explain how accuracy in customer electricity bills influence the level customer satisfaction in Nassarawa state?

1.4 Research Questions
1. To what extent has power supply reliability influenced the level of adoption of prepaid meter in Nassarawa state?
2. Does prepaid meter power supply accessibility influence the level customer adoption in Nassarawa state?
3. To what extent has customer power consumption control of prepaid meter influenced the level customer satisfaction in Nassarawa state?
4. How does accuracy in customer electricity bills influence the level customer satisfaction in Nassarawa state?

1.5 Significance of the Study
This research will improve the relationship between the service provider and users of prepaid electricity meters. This will lead enhance customer satisfaction and increased revenue for the organization. It will also ease the rolling out of the prepaid electricity metering project to other areas. In particular Nigeria Power is set to benefit in that it will be able to anticipate the challenges and thus improvise mechanisms that will mitigate undesirable effects of prepaid metering. Customers also stand a chance to understand, appreciate and embrace this new technology as far as electricity metering in Nigeria is concerned. This study will also make a contribution to the body of knowledge in prepaid metering.

1.6 Scope of the study
The study will be carried out in Nassarawa state of Nigeria Power utility company. This area has been selected because the use of prepaid electricity meters has been fully implemented. The study will be delimited to Nigeria power customer service staff in Nassarawa state. The study will be delimited to Nigeria Power customer service and field staff constraints that interact with customers on daily bases.

1.7 Limitations of the study
One of the limitations of this project is the availability of the staff to be interviewed. The core respondents are the customer service staff who are always busy attending to customer‘s queries. At the same time some of the staff may be reluctant to answer the questions to overcome this limitation, To overcome this problem the researcher will endeavor to explain the importance of the researching increasing knowledge towards reducing the challenges related with related to use of prepaid electricity meters .

1.8 Definition of terms
Accuracy in customer bills: This refers to bills that are free from errors or estimation.
Customer consumption control : This refers to extent to which the customer is able to influence quantity of power energy that is consumed within a given period.
Customer satisfaction: This is a measure of the extent to which a customer‘s needs are met.
Prepaid meter: This refers to paying for electricity upfront
Reliability of power supply: This refers to constant and stable provision of electricity.
Supply accessibility. This refers to availability tokens from different vending points. Supply without the customer being disconnected due to nonpayment.