Effectiveness of pre paid metering system in Revenue collection: A case of Tanesco

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Mzumbe University

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A Dissertation Submitted to Mzumbe University Dar es Salaam Campus College in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Accounting and Finance (MSc-A&F) of Mzumbe University.
The study on the effectiveness of prepaid metering system in revenue collection, a case of Tanzania Electricity Company (TANESCO), Kinondoni North district Dar es Salaam Tanzania. The objectives of the study were, To ascertain the benefits of the prepaid metering system to the corporation, To ascertain the benefits of prepaid metering system to customers, To ascertain the problems created by the prepaid metering system that hinder revenue collection and To ascertain the problems created by the prepaid metering system to customers. A case study was used; a sample of 60 respondents was used. Data collection methods were questionnaires and documentary analysis. Data were analyses using both Descriptive and Inferential Statistics with the aid of Statistical Package for Social Sciences (SPSS). Descriptive Statistics used included percentages and frequencies. The challenges include hindering energy provision is the loss of revenue as a result of poorly managed revenue collection systems. This study examined the effect of prepaid meters on revenue collection. This study concluded that prepaid metering system is not effective in revenue collection of TANESCO. The use of prepaid metering still face challenges such as constant system failures, corrupt employees, lack of experts in prepaid metering and power theft which has led to extra cost of creating a meter inspection department. The study recommended that management should consider the role of education and training in improving employees functions in relation to prepaid metering system, take serious measure to corrupt employees, buy high quality meters and install new servers for the prepaid metering system. The use of prepaid meters should be improved since they improve management of daily power consumption of customers, advance the revenue collection process, save time and regulation of electricity consumption

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pre paid system

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