Final Research Paper
Final Research Paper
MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
BY
AMSALU AMNIE
May, 2016
ADDIS ABABA, ETHIOPIA
1
ASSESSMENT OF IMPLEMENTATION OF POWER
ENERGY PREPAYMENT SERVICE SYSTEM: CASE OF
ETHIOPIAN ELECTRIC UTILITY (EEU)
BY
May, 2016
ADDIS ABABA, ETHIOPIA
ST.MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS
BY
AMSALU AMNIE
I wish to render my sincere gratitude to God Almighty for granting me his divine
wisdom, travelling mercies and strength to undertake this research work
successfully.
I also wish to thank my thesis advisor Dr. Matiwos Ensermu for the guidance, patience
and encouragement he gave me during the writing of this thesis.
I wish to thank my lovely family for their patience to give me time and money to study
this project.
I also wish to thank my brother Ayenew Tessera for his support to me without any
hesitation in advising and editing the thesis.
I also wish to express my profound gratitude to all those who have not been
mentioned in this thesis work but contributed to the successful completion of this
thesis. Finally, my special acknowledgement also goes to my respondents,
interviewees and other participants for their support in providing me the relevant
information.
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Table of Contents pages
ACKNOWLEDGEMENT…………………………………………………………… I
List of Tables ………………………………………………………………………… V
List of Figures……………………………………………………………………….. VI
Acronyms…… ……………………………………………………………………… VII
Abstract…………………………………………………………………………………. VIII
CHAPTER ONE: …………………………………………………………………… 1
Introduction................................................................................... 1
1.1 Background of the Study.......................................................... 1
1.2 Background of the Company…………………………………………….. 2
1.3 Problem Statement................................................................... 3
1.4 Objectives of the Study........................................................... 4
1.4.1 General Objective .......................................................... 4
1.4.2 Specific Objectives........................................................ 4
1.5 Research Questions................................................................... 5
1.6 Significance of the Study.......................................................... 5
1.7 Scope of the Study……. ............................................................ 6
1.8 Definition of Terms................................................................. 6
1.8.1 Definition and Functions of Meters………………………….. 6
1.8.2 Types of Electric Meters ……………………………………….. 6
1.8.3 Definition and Types of prepaid Meters……………………. 8
1.8.4 Integrated Single phase (ISP) Electronic Meter………….. 9
1.8.5 The Integrated Three Phase (ITP) Meter..…………………. 10
1.8.6 The Split Single Phase (SSP) Meter…………………………. 10
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3.1 Research Design …….……………………………………………………… 22
3.2. Research population ……………………………………………………. 22
3.3 Sample size and sampling scheme ………………………………….. 22
3.4 Method and Instruments of data collection……………………….. 24
3.5 Methods of Data analysis…………………………………………………. 25
3.6 Reliability……………………………………………………………………….26
3.7 Ethical Issues…………………………………………………………………. 26
CHAPTER FOUR: FINDINGS AND DISCUSSIONS………………………….. 28
4.1 Introduction…………………………………………………………………… 28
4.2 Socio-Demographic Characteristics of Customers………………… 28
4.2.1 Sex of Respondents…………………………………………………. 28
4.2.2 Age of Respondents…………………………………………………. 29
4.2.3 Level of Education of Respondents…………………………… 30
4.2.4 Years of Using Prepaid Meters………………………………….. 31
4.2.5 Tariff Class of Respondents……………………………………… 31
4.2.6. Marital Status of the Respondents…………………………… 32
4.2.7 Family Size of the Respondents……………………………….. 33
4.3. Factors of the Perception and Acceptability of Customers
Towards Prepayment Service System……………………………….. 33
4.3.1The Reliability Of Prepaid Service System……………………. 33
4.3.2 Durability of Prepaid Meters…………………………………………34
4.3.3 Characteristics of Cost of Installation…………………………....35
4.3.4 Characteristics of Accessibility of Vending Station………….35
4.3.5 Acceptance of the System around the Respondents Village.36
4.3.6 Acceptance is Because of No Choice………………………………37
4.3.7 Characteristics of Queuing at Vending Station………………..38
4.3.8 The Level of Satisfaction of the Service………………………….39
4.4. Rating of Opinions for those Customers Shifted from Postpaid
to Prepaid Billing System…………………………………………………… 40
4.4.1 Follow up of Customers in Energy Consumption……………..40
4.4.2 Encouraging Colleagues to use the System…………………….41
4.4.3 Using less Power by those who have shifted to the System.41
4.4.4 Characteristics of Blackout since they Shifted to the System..42
4.4.5 Accessibility of Vending Stations………………………………….43
4.4.6 The Frequency of Blowing Housing Appliance…………………43
4.5 Demographic Characteristics of Employees……………………………..44
4.5.1 Sex of Employees………………………………………………………..44
4.5.2 Education Level of Employees………………………………………45
4.5.3 Marital Status of the Respondent Employees …………………45
4.5.4 Work experience of employees………………………………………46
4.6 Factors of Challenges in Implementation of Prepayment System..46
4.6.1 Another Challenge that the Study found was Improper
Handling or Improper Interface of Smart Card………………46
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4.6.2 Improper Handling or Improper Interface of Smart Card…..47
4.6.3 Possibility of Fraud of Energy or Tariff by Customers………47
4.6.4 Ethio Telecom Network Problem…………………………………..48
4.6.5 Characteristics of Inadequate Voltage……………………………49
4.6.6 Prepaid Meter Hardware Components Failure Due to Poor
Production………………………………………………………………..49
4.6.7 Smart Card Failure Due to Poor Production…………………. 50
4.7 Opinions about the Involvement of Employees in Implementation
of Prepaid Service System……………………………………………………. 51
4.7.1 Employees Awareness on Benefits of Prepaid Meters………51
4.7.2 Installation of Durable Prepaid Meters………………………….51
4.7.3 Establishment of Emergency Response Team………………..52
4.7.4 Increasing Vending Stations……………………………………….53
4.7.5 Characteristics of Free Installation………………………………53
4.8 Opinions about the Participation of Employees in Implementation
of Prepaid Metering System at the Planning…………………………….54
4.8.1 Training is given about Operation and Installation…………54
4.8.2 Employees Having Information about the Intention of the
Organization ……………………………………………………………55
4.8.3 Participation of Employees in Promoting the Benefits of
the System……………………………………………………………….55
4.8.4 Employees Participation about Operation and
Installation……………………………………………………………….56
4.9 Trend of Customers (Growth of Customers per year)
for Seven Years…………………………………………………………………….57
4.10 Non-Parametric Tests…………………………………………………………..57
4.10.1 Chi-Square Test………………………………………………………..58
4.11 The Benefits of Prepayment Metering System…………………………59
4.12. Comparison of Findings with the Literature…………………………..61
CHAPTER FIVE ………………………………………………………………………..63
5. SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS……………………………………………………………..63
5.1Summary of Findings…………………………………………………………….63
5.1.1Part One: Findings from the Customers…………………………63
5.1.2Part Two: Findings from the Employees…………………………..64
5.2Conclusion…………………………………………………………………………..65
5.3 Recommendations………………………………………………………………..66
References …………………………………………………………………………69
Appendices…………………………………………………………….. 71
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List of Tables
v
List of Figures
vi
Acronyms
Power Prepayment metering system is the system of payment for energy utility
before usage of power with quality service providing.
SERVQUAL- The most popular service quality measure for different service
industries called SERVQUAL (Patrick A.et al. 1996)
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Abstract
Ethiopian Electric Utility (EEU) is state owned monopoly that transmits,
distributes, maintains and sales electric power nationwide. Ethiopian Electric
Utility (EEU) or former EEPCO (Ethiopian Electric Power Corporation) has been
undergoing various continued utility management practices.
The study tried to show about the acceptability and perception of customers, the
challenges of implementing power energy prepayment metering system over that
of post payment, finally the benefits of prepayment system, and the management’s
strategy. The researcher aimed to assess and analyze the existing practice
(quality) of prepayment customer service both from the employees’ and the
company’s perspectives, and thereby proposed possible marketing strategies that
are capable of improving the customer service quality for the subsequent adoption
of prepayment service.
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CHAPTER ONE:
1. Introduction
The introductory part of this study includes brief back ground of the study. This is
followed by highlights of the companies profile and the relevance of power energy
metering system in the ever changing world power utility and service delivery,
particularly in Ethiopian Electric Utility. This section also explains the problems of
study, objectives of the study, the research questions, significance, scope, and the
organization’s challenges and resistance about the implementation of energy meters and
application in general.
Providing a quality service is therefore about meeting and even, depending on the
company’s capability, and excelling customers’ expectation. In other words, it is the
difference between expectation prior to the service encounter and the actual perceived
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service that the company provides, that makes it to be reliant on the customers’
satisfaction/service experience. (Grönroos, 2008) Thus, companies in various service
industries have to be able to measure the actual service quality in order to take any
corrective measures in relation to improving both the technical and functional qualities,
such as by introducing new and innovative product/service features, revisiting the
established relationship, etc. Therefore, this study has assessed and analyzed the
challenges, perceptions and acceptability of the new system by customers, benefits of
service system, and strategies that company should follow.
The effort of the government to expand the electric power supply to the public was
hindered because of the Italian invasion of the country in the year 1936. The Italian
company called Coneil overtook the diesel generator and distribution system that was
owned by the government. In the year 1941 a public organization called Enemy property
Administration was established and retook all the generation and distribution system of
the electric power in the country.
Shewa Electric Power replaced the former company in the year 1948 and managed to
increase power supply to other administrative regions in addition to Shewa. In order to
represent the country as a whole, Shewa Electric was replaced by "Ethiopian Electric
light and Power” in the year 1955 and Board of Directors was appointed by the
government to supervise the company. Then, after eight months of age, the Ethiopian
Electric light and Power with the Ethiopian Electric Light and Power Authority (EELPA)
was established.
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The purpose of the change in name was the new company to engage in the business of
production, transmitting, disturbing and selling of electric energy to the public and carry
on any other lawful business. Board of Directors was assigned by the government and
its electric power production capacity was 35 GWH with 12500 customers.
In order to accommodate new changes in the country, by regulation No. 18/1997, the
Ethiopian Electric light and Power Authority was transformed to the Ethiopian Electric
Power Corporation (EEPCO) by reorganizing its functions in order to accommodate policy
and economic changes. The purpose of EEPCO was to reorganize the former authority
on the principles of commercialization and decentralization.
In 2013, the Ethiopian Electric Power Corporation has been divided into two separate
companies namely; the Ethiopian Electric Utility and the Ethiopian Electric Power. This
study was focused on the Ethiopian Electric Utility because all the customers are getting
service from this company.
The current annual electricity production capacity of the utility is about 2400 MW and
the number of customers is more than 2.5 million. Among this, about 251,188
customers are using prepayment system. Although the utility has been increasing the
number of customers by more than 20% annually, this does not mean that the utility
has met the demand for electric power. The utility has a plan to increase the number of
customers to double by 2017. To achieve this plan, the government is constructing mega
hydro, wind and geothermal electric power generation plants in different parts of the
country. The company (EEU) is doing its duty with about 12978 permanent employees
totally. (EEU report, 2014/15)
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existing customers. As a result of this most customers have less confidence in the
company, based on their past relationship, especially following after the implementation
of the new billing system. At a time there was a record of high number of customer
complaints in its history (EEPCO report 2009/2010). In addition, those who adopted the
new prepaid metering system service are often heard presenting their service which
creates the system lacks consistency in delivering right services of right quality in the
right quantity and time. Specifically power supply fluctuation and inadequate voltage
that can affect the workers’ full service provision as the customers need. In addition to
that the company prepaid system is being affected by Ethio- Telecom networking
system, as (EEU/Western Addis Ababa region districts complaints record report,
2013/14).Due to the challenges mentioned above, the implementation of energy
prepayment system in some areas is still under quotation. These and other challenges in
the company in relation of customers prompted the researcher to do his research on this
topic.
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Find out the benefits of prepayment metering system to the company.
Make appropriate recommendations for the successful implementation of the
prepayment metering system.
What are the existing challenges in implementing prepaid energy metering system
in relation to providing an adequate and quality service that the company is
aiming to provide?
What type of marketing strategies best suit in order to overcome the existing
challenges of customer service (with the implementation of energy prepayment
customer service)?
How is the trend (customer growth) towards using energy prepayment system?
How is customers’ perception and acceptability towards energy prepayment
system?
What are the benefits of prepayment metering system to the company?
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1.7 Scope of the study
This study was limited to the assessment and analysis of power prepayment services in
EEU customers. In terms of geographic scope, the research was limited to western Addis
Ababa region only. This is because of time and budget limit. Besides, the researcher
believed that the selected region can represent the whole population as the
characteristics of the system in one region are the same as the others. In western Addis
Ababa region there are 10 district customer service centers or vending stations which
are using energy prepayment system. The research study covered all the districts as
stratified proportion (Customer data base, December 2015)
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electric energy being used is directly proportional to the number of revolutions of the
disc. These types of meters are generally used on single phase alternating current (AC)
supply.
Prepayment Electric Meters – The prepayment electric meters accept tokens or prepaid
cards to get electricity supply. The customer has to pay the charges for the power supply
in advance. One can also top-up the amount for extending the period of electric supply
or when the balance over the supply is automatically cut off by a relay in the electric
meter.
Solid State Electric Meters – The solid state electric meters can be read automatically
and their power displayed on an LCD screen. They calculate and show the exact value of
the electricity consumed rather than its amount. The rate of the unit consumed varies
according to the time and day of the week. They can also record, supply and load
parameters such as power factor, reactive power, maximum demand, etc. Such types of
meters use the remote meter reading technology.
Electronic Meters – The latest electronic meters are based on automatic meter reading
or remote meter reading technologies. They use GSM, GPRS, Bluetooth, etc. to transfer
the information related to power consumption. They store the usage profiles and the
load requirements of a consumer and process it accordingly. Electric meters also help in
detecting energy theft or any attempts at meter tampering with the help of their inbuilt
automatic sensors.
Smart Meters:- Smart meters are the latest in energy meter technology: instead of
simply providing a total of energy consumption in your home like many conventional
meters, smart meters can provide you with detailed information on how and when you
used your energy. They also communicate with the electricity company, sending and
receiving information so that no one need come out to read your bill and the energy
supplier does not need to estimate your bill. There are many ways to get a smart meter
reading. These include using a monitor, online monitoring and looking at your bills (UK
Power Limited, 2012).
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1.8.3 Definition and Types of Prepaid Meters .
A Prepayment Meter is an easy way to pay for your gas and electricity. It allows you to
pay for your energy supply before you use it. If you would like to pay for your gas and
electricity in this way, it can be easily fitted into your home, providing it is safe and
practicable to do so.
A Prepayment meter will charge for any gas or electricity as you use it. It may also be
used to recover any outstanding debt from you at an agreed weekly rate. Some electricity
Prepayment Meters may also take a weekly amount to cover fixed unit charges as part of
our two-tier pricing structure. When we install a Prepayment Meter, we will provide you
with details of our gas or electricity charges. Where there are any additional charges in
connection with your Prepayment Meter, we will always tell you what they are
beforehand.
According to UK Power Limited (2012), Prepayment meters work in exactly the same way
as their name would suggest; instead of paying for your electricity after you have used it,
you pay before. UK Power Limited (2012) also noted that, there are two main types of
prepayment meters.
The first, standard prepayment meters may either display one or two readings and these
should simply be read as above like other meters.
The second type is meters connected to the Pay-point network. This system works by
accepting tokens, usually in the form of plastic keys which can be bought and then your
supply ‗topped up‘.
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consumer may not receive a subsequent bill as payment is made in advance for
electricity or gas. The terms and conditions for prepayment are established by the
electricity and gas contractors (also referred to in the industry as suppliers or energy
providers), and are subject to regulation. The design, construction, performance,
installation and usage of meters intended for prepayment applications are subject to
regulation in most countries.
Prepayment Electric meters now come in various types. Among them are:
The Integrated Single Phase (ISP ED) meter is a compact, two wire, keypad-based
prepayment electricity meter in a housing compatible with the ESKOM standard
common base electricity dispenser socket(Meter Mate, 2012).
This meter is most suited to new reticulation and is directly and easily interchangeable
with common base prepayment meters from other approved manufacturers using the
common base configuration. User interaction with the meter and access to meter
information (such as a low credit warning, energy consumption, and load contactor
status) are available using the keypad and LCD display.
The ISP ED meter is based on the ESKOM Specification, which calls for a prepayment
meter that can be fitted into a standard, plug-in common base. This concept ensures
simple installation and replacement procedures.
The meter is keypad based, fully STS compliant and supports the 20 digit STS
encryption algorithms. The meter has a wide range of information registers which can
easily be accessed by pressing the information button on the keypad and then entering
the number of the register.
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1.8.5 The Integrated Three Phase (ITP) meter
The Integrated Three Phase (ISP) meter is a four-wire 100 Amp per phase, keypad-based
prepayment meter in a compact BS housing. The meter is suitable for residential,
commercial and light industrial environments. The meter also features a dedicated
diagnostic indicator which shows the status of communication to the optional remote
customer interface unit (CIU).
The meter has two parts, the prepayment meter and the customer interface unit. The
meter is connected to the customer interface unit by a two core communications wire up
to a distance of 130 meters. It operates independently of the customer interface unit and
is usually installed in a secure, locked enclosure outside the consumer‘s home. The
customer interface unit is compact with a user-friendly keypad and display. An optional
local keypad and display can be fitted to the meter at the time of manufacture. The
meter also features a dedicated diagnostic indicator which shows the status of
communication to the customer interface unit.
The meter contains all critical metering, token decryption and load control functionality.
It operates independently and is immune to any form of tampering on the Customer
Interface Unit.
The meter is usually installed outside the home in a secure, locked enclosure which
should not be accessible to the consumer. This facilitates easy inspection by the utility
at any time and reduces the opportunity of fraud by tampering.
The meter consists of two parts namely, the CIU and the EMU. The CIU is the
customer‘s only interface with the meter, and is a compact unit with a user-friendly
10
keypad and display. It is usually installed in a convenient location in the consumer‘s
home - remote from the EMU, and is connected to the EMU with a pair of
communications wires.
The EMU contains all critical metering, number decryption and load control
functionality. It operates independently and is immune to any form of tampering on the
CIU interface. The EMU is usually installed in a secure, locked enclosure, typically a
pavement kiosk or pole-mounted equivalent. It is outside the consumer‘s home to
facilitate easy inspection by the utility at any time and to reduce the opportunity of
fraud by tampering. As an option, the EMU can be supplied with its own LCD display
and keypad, which allows the utility to view important meter parameters without the
need for an interrogation tool.
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CHAPTER TWO:
2. Literature Review
In this section, different sources of literatures, which were used for the subsequent
analysis of the empirical findings, are reviewed, discussed, compared and contrasted
with respect to (customer) service quality and some other important points in the
application of energy prepayment 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 (Estache et al., 2000), and had probably reached their highest development in
Great Britain (Waddams et al., 1997). In Argentina, prepayment meters were firstly
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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.
From a technological point of view, the prepayment system consists of three well
differentiated components. The first is a service meter installed at the unit where energy
will be consumed, such as a household dwelling or a store. In general, these meters are
of the ―two-gang‖ type and consist of a user‘s interface unit and a current measuring
set. The interface unit is a device installed inside the building, which allows the user to
―interact‖ with the meter. The metering unit, on the other hand, is the intelligent
component that stores credit and consumption information and it makes up the element
that either clears or switches off electricity supply. The second component of the system
is the so-called credit dispensing unit, which is the vending machine where consumers
can purchase electricity credit. In general, these sales outlets are located at the utility‘s
commercial offices as well as in stores with long opening hours. The third component is
the supporting device that links the various sales outlets to the utility‘s management
system.
The way the system works for the user is simple. The user purchases energy at the sales
outlet and, as part of the operation, receives a credit slip and a supporting device that
identifies the operation, which may be a voucher with an identification code or another
with a magnetic support. The user then utilizes the device to add on her new
consumption credit, either by entering a code or inserting the magnetic medium into the
interface unit, which in both cases will be possible only if the device identification
matches that of the meter.
The measuring unit then clears consumption of the amount of energy purchased and
also displays, in real time, the available credit remaining for consumption. The meter
switches off when credit is exhausted, and it switches on again only when the device
corresponding to a new purchase is inserted.
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consumers´ behavior. In the case of the firm, prepayment systems may result in a
decrease in metering, billing and disconnection and reconnection costs. The fact that
payment is made prior to consumption implies both a significant improvement in the
collection of revenues and a reduction of working capital. Moreover, prepaid systems
may constitute a way to provide more flexible payment options to users with minimal or
unreliable income streams without increasing transactional costs to the firm. From the
consumer‘s perspective, prepayment systems may result in a better understanding of
how much energy is being consumed, inducing more control of energy use and budget
management (Tewari and Shah, 2003). However, these apparent improvements are not
cost free: not only the change from conventional to prepaid electricity imply a change in
consumption habits, which may reduce the utility of consumers, but also it may result
in too few electricity consumption or in the self-disconnection of poorer groups of
consumers.
Marketers, therefore, underline the critical role service quality plays in the customer's
service experience. For instance, researchers demonstrate that better service quality
increases perceived service value and satisfaction; improves the service provider's
customer retention and financial performance; and also enhances a firm's corporate
image (Nguyen and Leblanc, 1998). In addition, researchers also investigated the
drivers of perceived service quality such as demographic factors (the effect of culture
and personal values). (Ladhari et al. 2011)
Customer experience generally ‘‘originates set of interactions from between a customer
and a product, a company, or part of its organization, which provoke a reaction. This
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experience is strictly personal and implies the (rational, customer’s emotional, physical
and spiritual”). ( Asubonteng,et. Al 2007)
Service Quality: refers to (Patrick et. al 1996, pp. 62), the ‘‘difference between
customers’ expectations for service performance prior to the service encounter and their
perceptions of the service received.” Service quality theory (Oliver, 1980) predicts that
clients will judge that quality is low if performance does not meet their expectations and
quality increases as performance exceeds expectations. Accordingly, customers’
expectations serve as the foundation on which service quality will be evaluated by
customer. In addition, as service quality increases, satisfaction with the service and
intentions to reuse the service increases.
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2.4 Customer Satisfaction
Customer satisfaction is a compelling issue because in the service industry customer
retention is more important than attracting new customers. Retaining customers has a
stronger impact on company profit than does attracting new customers. Therefore,
companies, so as to maximize profits in the long term, should strive for zero defection
through customer satisfaction.
The model further explains that the strength of the customers’ brand or product belief is
affected by customers’ past experiences where belief about product
attributes/consequences to be stronger when based on actual uses of the product.
Therefore, beliefs based on direct experience tend to have greater impact on the overall
attitudes toward a product thus marketers try to induce potential customers to actually
use the products (eg. Providing free trials of prepayment meter…). Whereas, unlike to
16
experience based beliefs, beliefs from mass advertising or conversations with sales
person tend to be weaker.
This would enable customers to have says on the product which ultimately leads to
benefit the customers in getting the right product, which is tailored toward their needs,
tastes and preferences, and the business, in terms of making the innovation
commercially successful. Customer behavior involves, Peter and Olson (2008),
‘interaction and exchange’ showing that relationship is key for better understanding and
subsequently devise an effective marketing strategy. It is also argued that there has
been fundamental shift in the meaning of innovation for the reason that customers are
no longer focused on only the functional attributes of new product but on other aspects
(of value) too. This reinforces, as explained earlier from that of Peter and Olson, the idea
that consumer behavior is very dynamic and needs to be continuously reviewed.
17
Equally to understanding the people’s differences, characteristics of different adopter
categories, it is also important to analyze innovation differences as to why one
innovation is accepted over the other. An examination of the different relationships
between different people or adopter categories and the innovation differences might in
turn lead to a deeper understanding of reactions and responses in the marketplace.
Peter and Olson (2008) too have shown the role of time, by using an adoption curve,
along with the percentage of adoption (diffusion over time) where the curve shows the
adoption process characterized by an upward increasing curve. In the beginning, there
are innovators with 3-5% adoption rate, early adopters with 10-15%, early majority and
late majority with up to 34% each and finally the laggards of 5-6% adoption. Therefore,
unlike to the critics made by different authors, time is important for the success of
innovation as it also guides marketer which strategy and at what time to follow.
Customers creativity reveals a wide forms of resistance, some highly proactive and some
possibly unconscious. According to a study result taken from Midgley and Dowling
(2003, pp.111), despite the fact that most individuals are interested in the particular
innovations, the dominant act of behavior was to reject adoption.
There are three scenarios of rejection, i.e. 1) symbolical rejection of innovation on the
basis of the available information that it is not for them-example reading a good review
of a given film but opting not to watch it because it is a violent, 2) Symbolically accepting
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the idea (innovation) but unable to move to the trial stage for some other reasons
(example a student favoring a store card but unable to own it due to his income) and 3)
Symbolically accepting the idea but postponing the trial till an appropriate time or
situation.
Customers also feel about ‘‘the comfort of the status quo’’, i.e. comfort with the existing
consumption(situation) which is also termed as habit(strength) and less motivation to
change this habit especially if the innovation is more of discontinuous type, as explained
above.
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between number of prepaid meters under prepaid billing system and revenue collection
costs. The study result was implied that with more installation of prepaid meters under
prepaid billing system, the revenue collection costs were reduced.
Another study was conducted in Ghana, (Quayson-Dadzie John, 2012) on “CUSTOMER
PERCEPTION AND ACCEPTABILITY ON THE USE OF PREPAID METERING SYSTEM IN
ACCRA WEST REGION OF ELECTRICITY COMPANY OF GHANA.” According to the study
conducted, the researcher concluded that the majority of the respondents thought that
the use of prepaid meters were not acceptable because of the numerous problems
associated with it. Factors among such problems were issues concerning cost of
installation, friendliness of the prepaid meter and durability and reliability .
The acceptance of the energy prepayment system is new topic in Ethiopia and so it
is useful to conduct this study, whose result could be used to improve the service
quality in energy sector.
The power energy prepayment service system has been studied in developed
countries, few in developing countries and it has not yet been investigated more
than one in Ethiopia.
Helping the top management of the EEU to identify the challenges and the
benefits for the adoption of the service system, as well as to encourage the general
acceptance of new technological innovations in Ethiopian context.
This study would help other researchers who are interested to conduct further
study in adopting the power energy prepayment system.
The concept of prepaid system is relatively new in Ethiopia. From the foregoing
discussion above, several studies on the global stage have been carried out in reference
to prepaid billing. However, no researches have been done in Ethiopia to show the
efficacy of such as a system as shown in the review of literature above. Evidently,
majority of global literature have concentrated on the qualitative aspects of prepaid,
such as opinion and perceptions of the prepaid users and acceptability of the prepaid
20
system, quantitative aspects of prepaid billing system have not been adequately
explored. Hence no such research has been done on the effect of prepaid billing on
revenue collection costs at all. Therefore, the researcher seeks to invite other researchers
to assess the effect of prepaid billing on revenue collection costs at Ethiopian Power and
disclose any link that may exist between these parameters.
In this study the researcher emphasized how consumers and employees of energy
provider see the prepayment system. Therefore, the views of consumers and employees
of energy providers must also be critically examined in this study.
21
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
Finally, empirical findings were presented with the help of respondents’ opinions and
views from which analysis and discussion of the empirical findings were forwarded.
The Yamane‘s simplified formula was used to calculate the sample size for the study by
using 95% level of confidential and 5% error (level of precision). It is defined as:
n= N
1+ N(e)2
n= 57002
1+57002(0.05)2
n= 397
Extra six respondents were participated additionally.
Total ………….6+397=403
A survey was done to analyze the perception of people towards system in western Addis
Ababa region. The Population was consisted of strata, customer service centers: No.01,
02, 03, 04, 05, 06, (07-was not yet implemented), 08, 09, 10, &11. The total population
number was 57,002. The sample size of each stratum by applying proportionate
23
stratified sampling, the sample size included with contingency was 403 total
respondents of customers.
Therefore, the sample size that was chosen from the districts for the study consists of
403 respondents of western Addis Ababa region residential (domestic) and non-
residential (general) customers. The industrial establishments were left out because
their installed load capacities were too large for the installation of prepaid meters and
hence do not use prepaid meters.
24
Since each instrument had its own exclusive importance, questionnaire was selected to
be filled by the sampled customers and employees of the utility. Questionnaires were
distributed to all 420 customers and 22 employees in the sampled service centers of the
Western Addis Ababa region in order to assess their views the challenges and as to how
energy prepayment service system affected the operations and customer satisfaction.
However, among 420 distributed questionnaires 403 respondents of customers were
returned their responses. On employees side from 22 questionnaires 20 respondents
were filled and returned.
In addition to the questionnaires, document review and KIIs were held to cross validate
findings. The KII was addressed some sensitive items which are related with the
promotion, future direction and the improvements of the service. Document review was
also enriching both the qualitative and quantitative data collected.
For the quantitative data, SPSS software was applied and simple descriptive statistics
such as percentage, charts, graphs etc were used to analyze such data. On the other
hand, qualitative data was analyzed using content analysis technique. Content analysis
25
was the process of extracting desired information from a text by systematically and
objectively identifying specified characteristic of the text (Smith, 2000 as quated in Hoyle
et al, 2002).
More specifically, analysis of qualitative data was carried out on the bases of the
following procedures recommended by Cresswell (2003):
The data was read a number of times to identify points that were significant for
the study
Thematic contents were formulated based on the major project questions
List out the emerging theme titles on a separate sheet in to find connection
between them.
A master list of themes were produced and ordered coherently. The relevant
information was organized under each theme and was analyzed.
3.6 Reliability
This involves the extent to which the researcher was measuring some attributes in a
repeatable way (Betz and Walish, 1995). Among other factors, reliability of case study
research appears to be affected seriously by the researchers’ bias and by interviewees’
response without proper understanding of the questions (Hoyle, et. al. 2002). While the
researcher’s bias might be inevitable, in this research maximum effort has been made to
avoid all these and other problems. For example, the researcher was tried to put clear
instructions at the beginning and be sure that all questions were answered based on
proper understanding of respondents. Moreover, ethical considerations including
anonymity were helpful in this regard.
It referred the extent to which the data actually measured the specific phenomenon that
the researcher was claiming to study. So in this study, the researcher tried to secure
validity by precisely defining major concepts, matching the items to the research
questions, triangulating data sources, etc.
26
rights of participants and other parties associated with the activity (Reynolds, 1982).
Similarly, ethical issues of this research had been given special attention starting from
problem identification up to interpretation stage using the ethical guide lines specified
by Cresswell (2003). Respondents were informed clearly about the purpose of the study,
the right to participate voluntarily, the right to ask questions including personal address
of the researcher, the right to get the copy of the study, and the right to have their
privacy respected; the right not to respond to question that they didn’t want to respond
too. On top of these, every necessary care had been taken not to put participants at risk
of social, psychological, physical and economic harm. Still, due attention was given to
the possibility of harmful information that might be disclosed during data analysis
process. The last but not least, the researcher was dreadfully careful about duly
acknowledging all materials and sources
27
CHAPTER FOUR: FINDINGS AND DISCUSSIONS
4.1 Introduction
This chapter presents analysis on the data collected for the study. It relates to
determining customer perception and acceptability on the use of prepaid metering
systems, factors customers consider before accepting prepaid meters and EEU
managements’ strategies in promoting the use of prepaid meters. The socio-demographic
characteristics of respondents are first analyzed to help understand customers’
perception and attitudes in accepting prepaid meters. Additionally this chapter also
presents the findings of the challenges and managements’ strategies aligned with the
objectives of the research.
Frequenc
Sex y Percentage
Missing 2 .5
Total 403 100
Source: primary data
The study found that out of the 403 respondents of customers used for the study,
70.00% were males whilst 29.5% were females. This implies that more male customers
are using the prepaid meters than females. The details are presented in table 2 above.
28
4.2.2 Age of Respondents
Table 3: Ages of Respondents
46-60 53 13.2
Above 60 5 1.2
missing 3 0.7
The analysis on the age of respondents indicated that the majority of the customers
(45.4%) were between the ages of 31-45 years. This is followed by customers in the age
group of 18-30 years which constitute 39.5%. Customers with the age group of above 60
years were found to have the least representation of 1.2%. The details are presented in
table 3 above.
29
4.2.3 Level of Education of Respondents
primary 35 8.8
diploma 92 23.1
others 7 1.8
missing 4
Total 403 100.00
Source: primary data
The study found that the level of education of respondents was generally high in the
study area. It was found that as high as 35.1% of the respondents have Secondary level
education and this is followed by 23.1% of those who have diploma level of education,
with only 8.8% having primary school. 19.8% of the respondents however had first
degree education level. This indicates that the majority of prepaid customers have
completed secondary school. The detail is illustrated in table 4 above.
30
4.2.4 Years of Using Prepaid Meters
4-6years 77 19.4
Missing 7
Total 403
The years of using prepaid meters was conducted and the responses were that 46.5%
have used prepaid meters between 1-3 years, 22.0% have also used prepaid meters for
less than a year. A smaller percentage (12.1%) has used prepaid meters for over six (6)
years. The details are presented in table in table 5 above.
4.2.5 Tariff Class of Respondents
Table 6: Tariff class of Respondents
Frequenc
Tariff Class of Respondents y Percentage
Non-residential(Commercial) 25 6.2
2 .5
Missing
31
The study found that 86.8% of the respondents were in the residential
tariff category and the non-residential or commercial tariff category of
respondents made up of 6.2%. Some 6.5% of the customers are using
both commercial and domestic type at the same time. The study indicates
that majority of prepaid customers were domestic. The details are
presented in table 6 above.
Separated 14 3.5
Widowed 8 2.0
Missing 5
Total 403
The study found that 59.8% of the customers are married, 34.7% of the respondents
were single (unmarried). The smallest number under marital status is 2% which is
widowed. The details are presented in table 7 above.
32
4.2.7 Family Size of the Respondents
Table 8: Family Size of Respondents
The study found that 33.1% of the customers respond that their family size was
four in number. From the study again 28.9% of the respondents were with the
family size of five and above. This indicates that the prepaid system contains
more family members using single meter. The details are presented in the table 8
above.
33
The study found that from 403 respondents about 196 strongly agreed that the
system is reliable, followed by 89 of the respondents who agreed, and about 22
respondents who strongly disagreed with the system. From the characteristics of
the reliability, about 285 respondents either strongly agreed or agreed. This
indicates that the system is reliable. The details are presented in bar diagram
above.
neutral 81 20.1
disagree 50 12.4
From the research study among 403 respondents except 18 missed, 31.3%
agreed and 26.6% strongly agreed. The smallest numbers with 5.2% of the
respondents were strongly disagreed. This indicates that the prepaid metering
system is durable that since altogether 57.9% of the respondents strongly agreed
or agreed with durability. The details are presented in table 9 above.
34
4.3.3 Characteristics of Cost of Installation
Figure2: Cost of Installation is Free or with less cost
agree 95 23.6
neutral 81 20.1
disagree 49 12.2
missing 14 3.5
35
Source: primary data
agree 91 22.6
neutral 63 15.6
disagree 39 9.7
missing 30 7.4
The study found that 31.5% of the total respondents strongly agreed
or 22.6% agreed. This means that about 54.1%, which is more than
the average have accepted the system comfortably. The detail is
presented above the table.
36
4.3.6 Acceptance is Because of No Choice
agree 62 15.4
neutral 78 19.4
disagree 69 17.1
missing 22 5.5
The study found that out of 403 respondents except 22 missed 121(30%) and
15.4% altogether 45.4% either strongly agreed or agreed that the acceptance is
because of not having alternatives. The study implies that the system should
be improved. The detail is presented above table 12.
37
4.3.7 Characteristics of Queuing at Vending Station
Table 13: Queuing at Vending Station
agree 84 20.8
disagree 55 13.6
strongly disagree 46 11.4
38
4.3.8 The Level of Satisfaction of the Service
Table 14: The Level of Satisfaction of the Service
agree 90 22.3
disagree 46 11.4
The study found that out of 403 respondents except 10 missed about 116(28.8%)
neutral with the satisfaction of the system in general. About 44.6% of the total
respondents were either agreed or strongly agreed with the satisfaction of prepaid
service system. This indicates that the majority of the customers are satisfied with the
service provision of the EEU. But the satisfaction level is not as such very attractive. The
detail is presented above table 14.
39
4.4. Rating of Opinions for those Customers Shifted from Postpaid to
Prepaid Billing System
agree 65 22.0
neutral 33 11.1
disagree 13 4.4
From the study illustrated above table; among 296 respondents except 107
which were not shifted from postpaid, 56.4% strongly agreed and 22.0%
agreed, in sum 78.4% of the customers are following up or controlling their
consumption day to day. This indicates that customers are taking care about
consumption and it contributes saving the power. The detail is presented
above with the table 15.
40
4.4.2 Encouraging Colleagues to use the System
The study found that among 288 respondents which have shifted their system from
postpaid about 110 strongly agreed followed about 69 who agreed. So that 179
respondents altogether are encouraging their colleagues to use the system. The detail is
presented above by bar chart 4.4.2
4.4.3 Using less Power by those who have shifted to the System
Figure 4: Using less Power by those who have Shifted to the System
41
The study found that out of 288 respondents who have shifted from postpaid
91(31.6%) were neutral while 74 and 69 altogether 143(49.7%) either agreed
or strongly agreed that they use less power since they shifted to prepaid
system. The detail is presented above on the bar chart above.
4.4.4Characteristics of Blackout since they Shifted to the System
The research study found that among 298 respondents who have shifted from postpaid
system 94(31.5%) strongly agreed and 44(14.8%) agreed altogether 46.3% either strongly
agreed or agreed that they are experiencing with frequently power blackout regarding in
prepaid metering system. The detail is presented above by pie diagram.
42
4.4.5 Accessibility of Vending Stations
With regard to the accessibility of vending stations, the majority of respondents i.e.
42.6% either agreed or strongly agreed. About 38.4% of the respondents were strongly
disagreed or disagreed that the accessibility of vending station is very difficult. Therefore
the research study indicates that even though the majority has agreed with accessibility,
EEU has to increase the vending stations in order to increase the quality of service. The
detail is presented above table 16.
43
The study found that 0ut of 298 respondents shifted from postpaid 143(48%) either
Therefore the study indicates that the system is user friendly. The detail is presented
The study included those employees who are working directly with the prepaid
system. Those employees are either prepaid system operators or those installing
Meters and maintenance groups. Therefore below their sex, age, education level,
marital status and work experience with system are included in questionnaire
From 20 employees there were about 17(85%) males and 3(15%) females. This
indicates that there were more males than females who are working in meter
installation or in System operation. The detail is presented above the table 4.5.1.
44
4.5.2 Education Level of Employees
Figure 7: Education Level of Employees
From the study out of 20 employees 13(65%) are first degree holders, followed
(35%) who graduated in diploma. So that the employees engaged in prepaid
system have minimum qualification of diploma. The detail is presented by Pie
chart above.
married 13 65.0
Total 20 100.0
The study found that from the respondent employees, 65% were married
and 35% were single. The detail is indicated above the table 4.5.4
45
4.5.4 Work experience of employees
Table19: Work experience of employees
1-3years 10 50.0
4-6years 4 20.0
Total 20 100.0
From the study out of 20 respondents of employees 10(50%) have 1-3 years of
work experience and followed 6(30%) with their work experience of above 6 years.
This indicates that the company has both experienced as well as fresh human
resources engaged in the system. The detail is presented above table 4.5.5
4.6 Factors of Challenges in Implementation of Prepayment System
From the following characteristics of the objectives of challenges the findings of the
Study is presented below.
4.6.1 prepaid meter hard ware components failure due to improper fixing
Table 20: hard ware components failure due to improper fixing
The study found that 55% of the respondents of the employees either strongly
agreed or agreed that the prepaid meter hard ware components can be failed due to
46
Improper fixing of meters and the like. The detail is presented above the table 4.6.1
Fig.8:
As illustrated above by bar chart, about 70% of the respondents both strongly agreed
and agreed that the failure of smartcard is due to improper Handling and improper
interfacing or setting.
47
The finding of the study indicates that 45% of the respondents either strongly
agreed or agreed with the possibility of fraud; following 40% disagreed or
strongly disagreed. This means that more than the averages of the respondents
believe with the possibility of fraud either in tariff or energy theft. The detail is
presented above by pie diagram
Figure 10:
As indicated above by bar chart, the study found that from 20 respondents of
the employees 70% strongly agreed and 20% agreed with the problem of
Ethio telecom network. No respondents disagreed with the problem. This
indicates that the prepaid system is being highly affected by networking.
48
4.6.5 Characteristics of Inadequate Voltage
agree 3 15.0
neutral 2 10.0
disagree 2 10.0
Total 20 100.0
From the study illustrated above table, about 65% of the respondents of the employees
were strongly agreed and 15% agreed that inadequate voltage is another big challenge
which is being highly affecting the system. This means that the system can’t run with
under voltage. It must meet the standard of voltage range.
49
As the bar chart above shows 80% of the respondents strongly agreed or
agreed with the failure of meter due to poor production. Therefore the study
found that the quality of prepaid meters and the like are poor. The detail of
the study is presented above on bar chart
agree 4 20.0
neutral 3 15.0
disagree 4 20.0
Total 20 100.0
The study found that 50% the employees’ respondents either strongly agreed or agreed
with the failure of smartcard due to poor production. But about 35% of the respondents
disagreed or strongly disagreed that failure of smart card is due to poor production.
From this finding the researcher can understand that even though there are other
factors, above the average of the respondents believe smart card failure is due to poor
production. The detail is presented above the table 22.
50
4.7 Opinions about the Involvement of Employees in Implementation of
Prepaid Service System
4.7.1 Employees Awareness on Benefits of Prepaid Meters
agree 5 25.0
neutral 5 25.0
disagree 1 5.0
Total 20 100.0
51
As illustrated in pie chart above 60% of the respondents had not decided whether the
prepaid meter is durable or not. But some 35% of the respondents of the employees
agreed or strongly agreed with the durability of meters. Only 5% of them had disagreed.
This implies that the majority of the employees are not comfortable with the meters and
the system. It needs further improvement.
As illustrated above on bar chart the study found that 45% of the respondents were not
sure whether there is technical emergency team or not. But about 40% either strongly
agreed or agreed that there is an emergency team for any complaints regarding the
prepaid metering system. There were only 15% of the respondents who disagreed with
the establishment of emergency response team. This implies that the majority of the
respondents of the employees do not know whether there is a team established in each
customer service centers that is aimed to maintain the system to run normally and to
reduce customer complain.
52
4.7.4 Increasing Vending Stations
Table 24: Increasing Vending Stations
agree 5 25.0
neutral 7 35.0
Total 20 100.0
As shown in the table above, the study found that 60% of the respondents strongly
agreed or agreed that the vending station is accessible for any customer. But some 35%
of the employees were not sure whether it is accessible or not. Only 5% of them strongly
disagreed with the increasing of vending stations. Therefore, the study indicates that the
majority of the employees supported that the vending station is accessible to purchase
energy. But it was not very attractive. The detail is presented above the table 4.7.3.
53
Above pie chart shows that 45% of the respondents either strongly agreed or agreed that
the installation of prepaid meter is free or less cost. Some 30% strongly disagreed or
disagreed with free installation. And 25% of them were not sure whether it is free or not.
This implies that the majority of the employees agreed that the prepaid meter
installation is free or less costly.
agree 9 45.0
neutral 4 20.0
disagree 2 10.0
Total 20 100.0
As the study found 65% of the total respondents strongly agreed or agreed that the
training was given about the operation and installation of the prepaid system. About
only 15% of the employees disagreed or strongly disagreed that the training was given,
the rest 20% were neutral in their opinion about the training. Therefore, the majority of
the respondents agreed that the training was given to employees who are directly linked
with the system. The detail is presented above the table 25.
54
4.8.2 Employees Having Information about the Intention of the Organization
From the above pie chart, the study about 65% of the respondents strongly agreed or
agreed that they have information about the intention of the organization. No
respondents disagreed about it except some 35% who were neutral, i.e. they were not
sure having information about the intension of the organization. This implies that the
majority of the employees were sure in participating with organization plan.
55
As the bar chart illustrates above 60% of the respondents agreed or
strongly agreed with the participation of promoting the benefits of the
prepaid metering system. Only 10% of the respondents disagreed or
strongly disagreed. Followed 30% were not sure in participating of
promotion. So that the study implies the majority of the employees were
participated in promoting the benefits the system in many ways.
agree 6 30.0
neutral 6 30.0
Total 20 100.0
The study found that 45% of the respondents strongly agreed or agreed with
the participation of employees in operation and installation of the prepaid
system. About 25% the respondents strongly disagreed, followed 35% of them
were not sure with the participation. Therefore, the study implies that above
the averages number were participated in installation and operation of the
prepaid metering system. The detail is presented with the above table 4.8.4
56
4.9 Trend of Customers(Growth of Customers per year) for Seven Years
Figure 17:
Source: customer
data base, December
2015
Above is to show about the customer growth for the consecutive seven years trend. As
illustrated in table and in graph, for the first three consecutive years there was
continuous and fast growth of customers in prepaid metering system. After third year
the growth was decreased, but in sixth year there was maximum number of customers
shifted to the prepaid metering system. Even though there are other factors that can be
considered for the growth of customers, the trend implies that there was irregularity of
growth.
57
4.10.1 Chi-Square Test
Frequencies
age of respondents
Age group Observed N Expected N Residual
marriage of respondents
58
service years of respondents using the system
Test Statistics
The chi-square goodness of fit test assumes that all of the expected frequencies are less
than 5. This assumption is evaluated by information in the footnote of the test statistics
table.
For this problem, we see that zero cells had an expected frequency less than 5. The
assumption is satisfied.
59
Since, .000 is less than .05; we reject the null hypothesis and find support for the
alternative hypothesis that the observed sample frequency counts differ from the
expected frequency counts based on the population.
4.11 The Benefits of Prepayment Metering System
According to the study findings from primary and secondary source such as manuals,
reports and brushers from the company as well as from the supplier; the benefits of the
prepaid system are as follows:
1. For the customer
It is transparent
Easy to add credit to the meter through smart card
They can control their own consumption
They can control their budget
No hassles with bill payment, disconnection or reconnection
There is no minimum charge
Require no deposit
No more disputed bills
Warning for low credit
Abnormal voltage protection
Automated record keeping
Upfront payment,
Improved cash flow,
Decreased non-technical losses,
Lower overheads expenses (no meter reading or billing),
Increased revenue,
No outstanding debt
Tamper protection
60
Non-allowance of over sanctioned load
Better load management.
Better customer services
Automated record keeping
Create power saving attitude to the consumers
From the findings, in general the researcher can conclude in both experienced and new
customers; the system is fairly acceptable but it needs further improvement. Because of
these some bad side effects; the majority of customers choose post paid metering
system. This is only for sustainable power supply without any interruption. But in other
61
cases such as financial reports, saving power and money, billing process, etc… are the
benefits that the customer satisfied with the system. In the other hand Ethio telocom
networking, inadequate voltages, poor quality of hardware components of the system,
and inaccessibility of emergency team are some big challenges to provide quality service.
62
CHAPTER FIVE:
The findings of the study to be drawn were shaped by the following and have two parts;
they are findings of samples from the customers and employees:
63
stations and the experiencing of blackout of power with related to the system. This
might happen due to sudden lasting the power purchased at any time, Or due to
lack of the quality of hard ware components of the meters and the like.
In general the researcher can conclude in both experienced and new customers;
the system is fairly acceptable but it needs further improvement. Because of these
some side effects, the majority of customers choose post paid metering system.
This is only for sustainable power supply without any interruption.
64
Factors of employees involvement in planning and participating in
implementation
According to the study, the employees agreed that they were participated in
training, having the information about the intension of the company, in operation
and installation of the system.
5.2 Conclusion
To conclude the research study of the Implementation of the Power Energy
Prepayment System it is important to remind that research design adopted for the
study was the descriptive method. Both primary and secondary sources of data were
used with questionnaire as the main instrument for collecting primary data on
customer acceptability, factors customers perceive before accepting the use of
prepaid meters, the challenges of service provision, the employees’ attitude, and
management strategies. The stratified sampling method was used to categorize
customers into the type of tariff whether domestic or commercial. A total sample size
of 403 were drawn out of 57, 002 customers in 10 districts.
It is known that this subsection presents the conclusion of the study. These
conclusions are derived from the findings which are based on the objectives of the
study. The study examined the assessment of customers’ perception, the existing
65
challenges of service provision, the employees’ attitude, and management strategies
towards prepaid metering system in Western A/A Region of EEU. The aim of this
study was to improve customers’ acceptability by determining the level of
acceptability of prepaid meters, analyze the factors customers consider before
accepting the use of prepaid meters, to improve the service quality and determine
management strategy in promoting usage of prepaid metering system, and
determining the benefits of the prepaid system. The conclusions to be drawn were
shaped by the findings of the study and have two parts; they are findings from the
customers and employees. According to the findings some of the basic factors were
discussed. Some of these factors are:
5.3 Recommendations
One of the objectives of the study was to make appropriate recommendations for the
successful implementation of prepayment Metering system. Based on the findings
and the conclusions drawn, the following recommendations are considered to be ideal
for successfully implementing the system.
1. Since there were more male customers than female ones in the study area and the
fact that there are more male subscribing to use of prepaid meters than their
female counterparts. It is being recommended that management should refocus
their public education on the use of prepaid meters on women in order to get a lot
more women to subscribe and to use of prepaid meters. Its education can motivate
female landladies who normally register their property in the name of their
husbands to register their property in their own names so that they can subscribe
66
and use the prepaid in their facility. In employee side to adjust the number of
females with males, management should encourage female employees to engage in
the system.
2. There is the general perception that prepaid meters are fairly acceptable to
customers in the study area. This perception suggests that the acceptability level
is quite low. As a result of this management should intensify public education as
well as improve on the efficiency of prepaid metering services in order to increase
the acceptability level of customers by addressing their concerns in terms of
installing quality products of hard ware components and increasing prepaid meter
vending points.
3. Customers consider a number of factors before accepting the use of prepaid
meters. Among the key factors are the user friendliness, durability and access to
prepaid vending point. It is therefore necessary that management should focus on
such factors in order to improve the acceptability on the use of the prepaid
meters.
4. Management should not only rely on major strategies of promoting acceptability
such as education on benefits on the use of prepaid meters, free installation,
increase vending points but should also emphasize on the need to establish an
emergency response unit that will attend to all technical emergency issues relating
to prepaid metering issues promptly.
5. In order to overcome the challenges facing the employees in day to day operation
in service provision and for customers to get good service and quality energy, the
company should adjust the power networking problems by the system or by the
site in improving the power distribution line which are being affected by
inadequate voltage.
6. The management of EEU should deal with the partner companies such as Ethio
Telecom Company for poor networking system that aggravates the service problem
and the hard ware components supplier company. In this case the only supplier
company is the ELSWEEDY ELECTROMETER Company which is the Egyptian.
But there are other companies who supply quality products for the other
countries, such as conlog type metering system of South Africa.
67
7. To the interested researchers; the researcher recommended that capable
researchers to conduct a comprehensive research in EEU regarding the prepaid
metering system and other causes for the repeated power interruption in the
country.
68
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Appendices
School of Graduate Studies
MA in Business Administration (General MBA)
I thank you for your contribution towards the success of this research.
Most of the questions seek response by ticking “√” in the box that corresponds to the
appropriate answer.
3. Marital Status
Single Married Divorced /separated Widowed
4. The number of your family members using electric power in your house.
Only two (couples only) three four more than five
71
5 .The level of education you have
No Formal Education Primary/JHS Secondary/SHS
Diploma/Certificate First degree
If any (Specify)……………...........................
6. How many years have you been using prepaid meter (s)?
Less than 1 year 1 – 3 years
No. Statement 1 2 3 4 5
1 I accept Prepaid meters because of its reliability
2 I accept Prepaid meters because of its durability
3 I accept Prepaid meters because its Cost of installation is less or
free
4 I accept Prepaid meters because of the availability of technicians
to repair faults of prepaid meters
5 I accept Prepaid meters because of the reliability of financial
report of vendors
6 I accept Prepaid meters because of I am accessing to prepaid
vending points easily
7 I accepted prepaid meter because I did not have any other choice
72
Section C: Rating of Opinions for those customers Shifted from post paid to
Prepaid Billing System
No. Statement 1 2 3 4 5
1 I am now careful with my consumption of electricity
2 I would encourage my colleagues to shift to prepaid billing
system
3 I pay less since I shifted to the prepaid billing system
4 I experience more blackout since I shifted to prepaid
billing system
5 The vending stations are easily accessible whenever I need
them
7 I wish to change to postpaid billing system if given a
chance
8 I spend little time at the station to purchase a power
I thank you for your contribution towards the success of this research.
73
How to complete the questionnaire:
Most of the questions seek response by ticking “√” in the box that corresponds to the
appropriate answer.
3. Marital Status
Single Married Divorced /separated Widowed
No. statement 1 2 3 4 5
1 Awareness of Benefits of Prepaid Meters
2 Installation of durable Prepaid Meters
3 Establishment of Emergencies Res ponse team
4 Free installation
5 Increasing vending point
74
Section C: challenges in implementation of prepayment system
No. statement 1 2 3 4 5
1 Meter hardware components ( micro-processor ,
battery, IC-reader , relay , relay switch and others)
failure due to improper meter fixing
2 Smart card failure due to improper handling.
3 If there is no follow up, the customer may use his
domestic tariff meter for commercial use.
4 Network problems due to Ethio-Telocom service
5 The frequency of customers complain is high due to
voltage fluctuation
6 Meter hardware components ( micro-processor ,
battery, IC-reader , relay , relay switch and others)
failure due to poor production
7 Smart card failure due to poor production quality
No. statement 1 2 3 4 5
1 We were involved in sensitizing the consumers on the
advantages of using the prepaid meters
2 We were informed of the organization’s intention to adopt
the new prepaid meters
3 We were involved in sensitizing the consumers on the use
of the prepaid meters
4 We were given in service training on how to install the
new prepaid meters
5 We were actively involved in the installation of the
prepaid meters
75
Part3: Interview (for management team)
Purpose:
The purpose of this interview is to collect the data on customers’ perception and
acceptability and some other related issues on the use of prepaid metering system in
Ethiopian Electric Utility Company (EEU) West A/Ababa Region. It is purely for
academic purpose and does not affect you in any course. You are not expected to write
your names and your answers and profiles will be kept confidential and would only
serve the intended purpose of academic Thesis. Yours genuine, frankly, and timely
response is vital for the success of the study. Therefore, I kindly request you to response
to each item below carefully.
I thank you for your contribution towards the success of this research.
1. Do you think the management of EEU is doing enough to promote the use of prepaid
meters?
Yes No
2. If yes to question 1 above, Explain what the management has been doing?
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
……………………………………………………………….
3. In your opinion, what are the challenges of prepayment service from the company,
employees (sales people) and customers’ perspectives?
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________
4. According to your view, how has it all been affecting (refer to the question No. 3 above)
the overall service quality of the utility and some other implications, if any, say
cost/revenue of the company?
_______________________________________________________________________________________
_______________________________________________________________________________________
____________________________________________________________
76
5. What measures, if any, have been taken to manage these problems and thereby
improve the customer service quality?
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
___________________________________________________
6. How is the role of the technology vendor (Supplier Company) in affecting the customer
service?
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
___________________________________________________
7. Do you evaluate and monitor the customers’ satisfaction or perception about the
system? And how?
_______________________________________________________________________________________
_______________________________________________________________________________________
________________________
8. Could you please, briefly describe how customer complaints are being handled?
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
77
AMHARIC VERSION
አምሳሉ አምኔ
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ኢሜል፡ ([email protected])
ክፍል ሀ: ማህበራዊ ማንነት
1. ፆታ
ወንድ ሴት
2. ከሚከተሉት ውስጥ የእርስዎን የዕደሜ ክልል ይምረጡ
18 – 30 31 – 45 46 – 60 61 እና ከዚያ በላይ
3. የጋብቻ ሁኔታ
ያለገባ/ች ያገባ/ች የተፈታ/ች የሞተበት/ባት
78
4. የቤተሰብ አባላት ቁጥር
ሁለት/በጋበቻ ተጠማሪ/ ሦስት አራት አምስትና ከዛ በላይ
5 .የትምህርት ደረጃ
ማንበብ መፃፍ አንደኛ ደረጃ ትምህርት ሁለተኛ ደረጀ ዲፕሎማ
የመጀመሪያ ዲግሪ
ከላይ ከተጠቀሱት ውጭ ከሆኑ ይፃፉ ……………...........................
6. ለምን ያህል ጊዜ የቅድመ ክፍያ ቆጣሪ አገልግሎት ተጠቃሚ ነዎት?
ከአንድ ዓመት በታች 1-3 ዓመት
ክፍል ለ: እባክዎ ስለ ቅድመ ክፍያ የአሌክትሪክ አገልገሎት ያለዎትን ግንዛቤና አመለካከት እንዲሁም አገልግሎቱ
ያለውን ተቀባይነት በተመለከተ በሰንጠረዥ ውስጥ ያመልክቱ
በጣም እስማማለሁ = 1፣ እስማማለሁ =2፣ መካከለኛ=3፣ አልስማማም=4፣ በጣም አልስማማም=5
79
ክፍል ሐ: ከድህረ ክፍያ አገልግሎት ወደ ቅድመ ክፍያ አገልግሎት ለዞሩ ደንበኞች ብቻ የሚሞላ መጠይቅ
በጣም እስማማለሁ = 1፣ እስማማለሁ =2፣ መካከለኛ=3፣ አልስማማም=4፣ በጣም አልስማማም=5
80
DECLARATION
I declare that the work done in the project entitled “Assessment of Implementation of
Power Energy Prepayment Service System”: Case of Ethiopian Electric Utility: is
my original work under the supervision and guidance of Dr.Matiwos Ensermu,
Department of General MBA, St. MARY’s University. This work has not been previously
submitted for any higher institution for any diploma, degree or other similar work.
Declared by
_____________________ _____________________
Student Signature
81
ENDORSEMENT
This thesis has been submitted to St. Mary’s University, school of Graduate Studies for
the examination with my approval as a university advisor.
------------------------------- -----------------------------
Advisor Signature
82