joseph m. forson & kwabena duah electricity company of ghana prepayment in ghana technical &...

Joseph M. Forson&

Kwabena DuahELECTRICITY COMPANY OF

GHANA

PREPAYMENT IN GHANA Technical & Accounting Related

Developments

• APRIL 1994• COMMENCEMENT OF

PREPAYMENT SCHEME• AT PRESENT• METERS INSTALLED: 86,015

INTRODUCTION

INTRODUCTION

• REGIONAL BREAKDOWN:• ACCRA EAST = 26,181• ACCRA WEST = 24,541• TEMA = 5,294• ASH/WEST = 18,605• ASH/EAST = 11,394

INTRODUCTION

MAIN OBJECTIVE

MAXIMISE REVENUE

INTRODUCTION

IN THE RECENT PAST REDUCTION IN GENERATED

REVENUE HIGH LINE LOSSES (29%)(1% loss reduction equivalent to ¢ 30 billion or $ 3.2 million

annually)

PRESENTATION

CONCERNS MONITORING

(METERING/VENDING) OBSERVATIONS RESULTS

PRESENTATION

FINDINGS ACTIONS TAKEN TREATMENT OF RECOVERED

UNITS AND SALES CONCLUSION

CONCERNS E.C.G. LOW MONTHLY SALES HIGH LINE LOSSES

CUSTOMERS COMPLAINTS BILL DISPUTES

CONCERNS DUE TO CERTAIN FRAUDULENT ACTIVITIES

MONITORING

FIELD MONITORING OF PREPAID CUSTOMERS

SPECIAL EMPHASIS: HOTELS, SUPERMARKETS, BANKS, LIGHT INDUSTRIES ETC.

CHECKED ALL PURCHASE RECEIPTS/UNITS ADJUSTMENT

MONITORING

CHECKED VENDING TRANSACTION CARDS

CHECKED POSSIBLE METER BY-PASS/TAMPERING

VENDING CENTRES

MANNED BY THIRD-PARTY

RECONCILIATION : FIELD DATA WITH VENDING SYSTEM INFORMATION

OBSERVATIONS VARIANCES VENDING SYSTEM/CUSTOMER DATA UNITS ON CUSTOMER DATA

DIFFERENT FROM UNITS IN THE VENDING SYSTEM

UNITS ON CUSTOMER DATA HIGHER THAN THAT OF THE VENDING SYSTEM

OBSERVATIONS

ADJUSTMENTS ON BOTH VENDING SYSTEM AND CUSTOMER DATA WERE NOT AUTHORISED

TAMPERING OF TRIPPING MECHANISM

RESULTS

VENDING FRAUD Vending corrections/reversals UNITS ADJUSTMENT FRAUD Un-authorized issue of units METERING FRAUD Meter tampering/bypass

FINDINGS

VENDING FRAUD Perpetrated by vending cashier UNITS ADJUSTMENT FRAUD Connivance:

cashier/customer/field staff METERING FRAUD Perpetrated by customer/agent

ACTION TAKEN

VENDING/ADJUSTMENT FRAUD ALL METERS REPLACED LOST UNITS VALUED AND PAID

BY THE THIRD PARTY

ACTION TAKEN

METERING FRAUD RESPECTIVE CUSTOMERS

SURCHARGED LEGAL ACTION TAKEN AGAINST

CULPABLE CUSTOMERS

RECOVERY

VENDING/ADJUSTMENT FRAUDS

Total recovery: 1.2 GWh ~ ¢1.8 billion

($196,000)

RECOVERY

METERING FRAUD TOTAL RECOVERY 3.3 GWh ~ ¢ 3.9billion

($424,000)

TREATMENT of recovered units & value into the Billing System

NON-RELIANCE OF PREPAYMENT FACILITY TO RECOVER UNITS

SET UP ILLEGAL CUSTOMER ACCOUNT IN THE CREDIT BILLING SYSTEM(ICA)

TREATMENT of recovered units & value into the Billing System

BREAKING THE TOTAL ASSESSMENT INTO CURRENT YEAR (UNITS & VALUE) AND PREVIOUS YRS (VALUE)

RAISING OF DEBIT SALES ADJUSTMENTS OF BOTH UNITS AND VALUE (CURRENT YEAR) INTO ICA

TREATMENT of recovered units & value into the Billing System

RAISING OF DEBIT ADJUSTMENT (PREVIOUS YEARS) VALUE ONLY INTO ICA [Finance division copied for Journal voucher]

PAYMENTS ARE EFFECTED INTO THE ICA TO CLEAR THE DEBT

EFFECTS THE UNITS & VALUE ON THE SALES

AND LOSSES INCREASE IN SALES FOR THE

CURRENT YEAR UNDER REVIEW REDUCTION IN THE CURRENT YEAR

SYSTEM LOSSES 25% as at December 2004 23% as at March 2005

OVERALL INCREASE IN GENERATED REVENUE [as payments are effected]

CONCLUSION

VENDING SOFTWARE ENHANCED

NEW SYSTEM CONTROLS INTRODUCED

PROPER ACCOUNTING PROCEDURES PUT IN PLACE

Thank you