When I was in the South Africa, I noticed that the people pre-paid
for their electricity. Each meter has a unique meter card (only works
with that meter). People go to the local office and pre-purchase as much electricity as they wish . When the card is empty, they recharge it again.
They also have a spare card.
I see that this has a number of advantages:
1. Households can budget their electricity and never end up with
large bills that they cannot pay, resulting in disconnections or
illegal connections.
2. The electricity companies get the money upfront, just like telephone
card companies! This increases their liquidity to purchase more fuel.
3. The cost of electricity should be government regulated (just like the US) and increases allowed due to fuel cost increases. The incentive for an
existing household with a legal connection (with or without meter) is that they would have control over their electricity bill. Customers with monthly
bills will see a reduction by using such a system.
4. Based on the meter card identification numbers,
it would be possible to set up groups of electricity users (e.g. business versus
private versus those who need to be subsidized). Cards can expire
every couple of years so that people must go to the electricity office to get
a new card. This stops people stealing meters from subsidize locations!
The downside is the cost of installation and the time to do that nationwide.
However, the electricity companies and the government can target areas where the problem is severe and even subsidize the installation in poorer areas and get their money back through the cost of recharging the card.
Although to electricity problems in the DR are multi-faceted, I have
one small suggestion: those who use electricity need to pay for it
and have an incentive to do so. I don't know who to inform in the
Dom. Rep. of this idea, but if you know anyone, please do so.
What do you think?
for their electricity. Each meter has a unique meter card (only works
with that meter). People go to the local office and pre-purchase as much electricity as they wish . When the card is empty, they recharge it again.
They also have a spare card.
I see that this has a number of advantages:
1. Households can budget their electricity and never end up with
large bills that they cannot pay, resulting in disconnections or
illegal connections.
2. The electricity companies get the money upfront, just like telephone
card companies! This increases their liquidity to purchase more fuel.
3. The cost of electricity should be government regulated (just like the US) and increases allowed due to fuel cost increases. The incentive for an
existing household with a legal connection (with or without meter) is that they would have control over their electricity bill. Customers with monthly
bills will see a reduction by using such a system.
4. Based on the meter card identification numbers,
it would be possible to set up groups of electricity users (e.g. business versus
private versus those who need to be subsidized). Cards can expire
every couple of years so that people must go to the electricity office to get
a new card. This stops people stealing meters from subsidize locations!
The downside is the cost of installation and the time to do that nationwide.
However, the electricity companies and the government can target areas where the problem is severe and even subsidize the installation in poorer areas and get their money back through the cost of recharging the card.
Although to electricity problems in the DR are multi-faceted, I have
one small suggestion: those who use electricity need to pay for it
and have an incentive to do so. I don't know who to inform in the
Dom. Rep. of this idea, but if you know anyone, please do so.
What do you think?