Prepaid Meter Will Become a Market Growth Point in The Next Few Years
Prepaid electric energy meters are also called quantitative electric energy meters and IC card electric energy meters. In addition to the metering function of ordinary electric energy meters, the user buys electricity first, and then can use electricity after buying electricity. If the user does not continue to buy electricity after running out of electricity, the power supply will be automatically cut off to stop the power supply.
Over the past 20 years, prepaid products and services have become a growth industry. Electricity will be the next growth market for prepaid products, with global utilities forecasting $11.4 billion to invest in prepaid metering over the next 10 years, according to new research from US market research firm Northeast Group.
Utilities around the world are working to reduce unpaid bills and power theft while encouraging customers to conserve electricity and budget efficiently. Utilities are deploying two different types of prepaid meters. The first is a non-communication prepaid meter, usually with a smart card or key code; the second is a communication smart meter, with prepaid charging and software systems.
“Both utilities and customers can benefit from prepaid metering,” said Ben Gardner, president of Northeastern Group. “Many customers are accustomed to the prepaid model of mobile phones and prefer improved control over their budgets. At the same time, utilities can decrease bad debt and electricity theft. Prepaid electricity also leads to more energy savings.”
Prepaid metering will have the highest penetration in countries where electricity theft is prevalent, where billing in utilities is prone to errors, and where high levels of customer indebtedness are common. These countries are mainly concentrated in Africa, South and Southeast Asia, including Nigeria, South Africa, Bangladesh, and Indonesia. Prepaid electricity will play an increasingly important role in developed countries as smart meters are deployed. Currently, prepaid meters have been installed in the United States, the United Kingdom and Belgium, among others.
