The Effect Of Prepaid Meter In A Service Industry (A Case Study Of PHCH)

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The Effect Of Prepaid Meter In A Service Industry (A Case Study Of PHCH)


In 2007 Power Holding Company of Nigeria (PHCN) introduced prepayment meter to Nigeria Consumer. It was widely accepted by the consumer because they believed that the day of estimated billing were over but they met their shock when it was discovered that (PHCN) was hoarding the meters and selling them to the highest bidders. This development has continued to generate a lot of controversies till today. Thos who were lucky to have procured their own are counting their gains. According to them, it was a good innovation by the PHCN. It is in the light of the above that the researcher has investigated on the effect of prepaid meter in a service industry using PHCN Enugu as the case study. The project was segmented into four chapters. The first chapter contained the introduction, significance of the study, statement of problem, objective of the study among others. Again the literature review formed part of chapter two. The researcher reviewed other works on the subject of discussion by the seasoned authors. Again journals from PHCN were used also. While chapter and chapter four contained the research design, methodology summary of findings and recommendations.

Chapter One


1.1 Background Of The Study

Electronic prepaid meter that is an electronic device the enables an energy consumer to pay for energy before actually using it. Power Holding Company of Nigeria (PHCN) in 2007 introduced the use of prepaid meter to enable Nigeria consumers device satisfaction for their money. The introduction of the new technology was widely acknowledged at least it will bring to an end the use of analogue meters which were in use before 2007. Many thought that the authorities at the PHCN will speed up action in making sure the meters are circulated throughout the country but the reverse is the case because only a few Nigerians have the new meters installed for them. The risk of the population is still waiting to PHCH to make available the meters but nothing bears to be happening. The effect of this development is felt bath the consumer and PHNC. On the side of PHCN they are losing a lot of revenue because with the new technology in place unfair billing will not be giving to the consumer and they seen to be making nothing any time the energy is met supplied. Another side of it is that PHCH will reduce its administrative over lead, when this new energy payment meters one fully deployed in most parts of Nigeria. Because this new watering system is electronic most of the steps required in administering it can be automated. This will reduce staff requirement and as result reduce staff over lead. In chapter two of this project we shall discuss in details the benefits of prepaid meter to PHCN and to Nigeria consumers as well.

1.2 Statement Problem

Prepaid meter is new to electronic consumer in Nigeria. Part of the reason it was introduced in 1007 is to enable the electronic consumer have value fro the money they are paying to PHCH. As the saying goes that nothing good lasts long in Nigeria. As soon the new technology was introduced, the effect was felt by the PHCH instead of becoming a welcome development the proves that be in the industry stopped the circulation of prepaid meters because they have discovered that they would not cut corners in the discharge of their duties.

The first set of people that got the meter are courting their blessing till today. While those who are met lucky are still burffering till today. We noticed that those that have the prepaid meter have rest of mind because method gives them estimated bills instead they pay as they consumed. Again the introduction of the new meter has made PHCH to supply more light to the made areas that have the prepaid meters. This is true because they will not be making much money as long as there no power in those areas. This will in turn affect their revenue generation because there will decrease in the purchase of credit card.

The effect of this prepaid meter is what will be discussing throughout the project.

1.3 Objective Of The Study

The objectives that made the researcher go into this topic are as follows:

  1. To ascertain the effect of prepaid meter in service industry like PHCH.
  2. To introduce whether electronic consumer prefers prepaid meter to analogue meter.
  3. To also find out why the prepaid meter is in short supply.
  4. To known why PHCN less failed to provide constant power despite the huge amount that has gone into the project.
  5. To find out the extent the prepaid meter has increased or decreased the revenue generation of PHCN.
  6. To make suggestion and recommendation that could be useful in solving the identified problems.

1.4 Significance Of The Study

The significance of this study is to achieve a great success in contributing the little the researcher can, if not a great deal in ascertaining the effect of prepaid meter in PHCN. This project will bring about increase in service delivery because the researchers will enlighten PHCN the importance of quality service delivery to their customers. It is as null hoped that this research work will educate the electric consumers on the need to welcome the introduction of the new prepaid meter.

In addition, it will bring about more noticeable contributions and improvements to both headquarters and other branches of PHCN nation wide. Furthermore, this study will be of increase benefit to students and more especially to those who are carryout research in the same topic or related ones.

1.6 Definition Of Term


An individual or house holds that purchase a particular product for personal or household or industrial use.


The favouring of a particular product or brand of one;s choice.


It is acronm for Power Holding Company of Nigeria

Prepayment Meter:

It is an electronic device that enable an energy consumer to pay for energy before actually using it.

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