Power utility Eskom has stepped up smart meter deployment in Gauteng.
The parastatal is installing smart meters in Sandton and Midrand, with 5 932 meters fitted between January and March.
Eskom says the conversions of the meters to prepayment will resume in July, once it has upgraded its online vending system. The system is used by consumers to buy electricity tokens.
Customers can buy their electricity tokens through a range of vending points, including banks, retail shops, Eskom buildings, spazas, kiosks and ATMs. The online vending system will utilise electronic systems to facilitate 24/7 purchase via EFT, the Internet and by means of smartphones.
The move to prepaid meters is part of Eskom's plan to improve cash flow and address the power utility's debt collection challenges.
Eskom has made a strategic decision to convert all of its conventionally billed customers to prepaid meters, the parastatal says. Smart meters rely heavily on a reliable communication network, so where such a network does not exist, alternatives will be considered, it adds.
"Eskom has allowed for the cost of the project to be incurred over an extended period of time and has determined that notwithstanding such cost, there will be a net positive improvement in Eskom's revenue and cash flow position which will benefit all ratepayers significantly," it says in an e-mailed response to ITWeb.
Smart meter rollout began in 2013 in an attempt to resolve issues around inaccurate billing, which were caused by post-implementation problems. Although the programme faced some teething problems, it is now moving ahead.
From the Gauteng region, Eskom is looking to convert the rest of the country to smart meters.
"This project will enhance our revenue which is an important focus area to support our financial sustainability efforts," says Eskom.
"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."
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, says Eskom.
In Soweto, the power utility has 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 in revenue collection in Soweto. The figure is cumulative from July 2014 up to 28 February 2016.
However, protesters in Soweto vandalised Eskom offices in Zola and the power utility stopped the process in March 2015 after the community started intimidating employees and contractors.
In Sandton and Midrand, Eskom says it has been smooth except some cases where several customers denied the power utility's employees access to their properties.
"During the installation, we also realised there are quite a number of people in Sandton and Midrand who are stealing electricity or have illegal connections. We are pleading with our customers to do the right thing before they are caught, which will lead to the law taking its course."
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