African Utility Week - Comparing Innovation with Pre-Paid Meters vs Post-Paid Smartphone Approaches

David Schaub-JonesDirectorSeeSawSouth Africa

The pros and cons of prepaid versus mobile enabled postpaid approaches for African water utilities –

David Schaub-Jones, SeeSaw

Software

Advice

Training

Prepaid Metering

vs

Postpaid Mobile Approaches

Source: Hisupplier.com

Prepaid metering

Source: Rabble.ca (Prepaid meter in Lesotho, 2008)

Prepaid metering

Institutional Water kiosks

Household meters

Source: Heymans, Eales & Franceys, WSP 2014

Source: Heymans, Eales & Franceys, WSP 2014

Prepaid household meters 

Advantages for utilities 

Challenges for utilities 

Upfront collection

Less admin around billing

No reconnection charges

High initial cost for prepaid meters Additional cost of

repairs/maintenance/spare parts Need adequate pressure in network to

supply Strong customer service required Technology has shown unreliable

performance Large investment to adopt new technology

(hardware, organisational change, training, etc)  

Mobile – enabled Postpaid Approaches

???

1) Enter meter number2) Enter meter reading3) Take a photo of meter

(automatically records the date, time, and GPS co-ordinates)

Mobile-enabled postpaid approach

4) After meter reading, print bill and deliver5) Send bill by SMS6) Optional: take payment and print receipt

Mobile-enabled postpaid approach

Exi

stin

g b

illin

g

& C

RM

sys

tem

s

Source: Heymans, Eales & Franceys WSP 2014 (underlying diagram only)

Post-paid mobile innovation (vs prepaid) 

Advantages for utilities (compared to prepaid)

Challenges for utilities (compared to prepaid) 

Capital costs much lower (opex too when full costs are taken into account)

More easily integrated with current practices

No need to maintain two billing systems and create a separate vending system

Manageable training and organizational change

Room for future evolution (with prepaid you are stuck with the tech you bought, ICT allows for evolution according to feedback)

Meter readers can perform other functions (customer engagement, fault reporting)

In-person disconnection still necessary

Culture change of meter readers may be required

Does not address institutional customers to same degree

Does not offer some of the (often missing) advantages of prepaid water kiosks (eg longer hours, no vendor markup)

Our Philosophy …

excerpts from SeeSaw ‘s website

Q & A