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