An evaluation of prepaid electricity meters acceptance and efficacy among low-income households in Soweto, South Africa

Abstract: In 2003, Soweto had an electricity bad debt amounting to R1.4 billion. In an attempt to motivate household to pay for the electricity consumed, the utility erased the debt under the Integrated National Electrification Programme (INEP). However, by 2015 Soweto yet again owed Eskom more than 60% (about R8.6 billion) of the total national household electricity debt (R13.6 billion = US$1.14 billion). To ameliorate and remedy the arrearage situation, prepaid electricity meters were introduced in the township in 2007. Since then, more than 40% (74 000) of Eskom’s clients1 in the township the township is under this model of payment and there have been noteworthy improvements in payments of electricity bills. In the 2016/2017 financial year, the utility recorded payment improvement of approximately R39 million. In view of this benefit, low-income households in the township have however persistently protested against the deployment and utilisation of the system – contesting about its ill effect on their livelihood. This thesis therefore sought to scientifically investigate these contrasting views currently characterising the prepaid meter market in Soweto, and recommend mechanisms for improved efficacy and acceptance. To achieve the set aim, our research extensively reviews scholarly research or scientific literature on the theme of household prepaid electricity meters, worldwide. Herein, we find that there are two forms of trends currently characterising the market and literature: namely the emerging and persistent trends. Among the persistent trends, the technology is still postured as an enabler of household electricity savings and improved budgeting. However, an important emerging trend is equally noted, whereby it becomes apparent that the past decade been characterised by growing interest of scientific research opposing the idea of prepaid meters and its effect thereof, especially amongst low-income households. This emerging trend is consistent...Ph.D. (Energy Studies