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This research titled “effectiveness of pre-paid metering system in revenue collection: A Case of TANESCO. The study was carried out at Tanzania Electric Supply Company Limited, Mbeya Region. The Specific Objectives of the study was to ascertain the benefits of the prepaid metering system to the Tanzania Electric Supply Company (TANESCO) Limited, To ascertain the Challenges of prepaid metering system to customers and to find out the effect of revenue collection period in prepaid system at TANESCO.
The study employed cross sectional research design. The target population consisted of TANESCO-Mbeya Branches. Study collected data from annual report, financial report and other relevant documents on a monthly basis from January 2014 to December, 2019.The observations were 2 branches multiplied by 36 months (5years) giving 180 observations. Census technique were used to get information from all the branches in Coast region. The data collection instrument used in this study was content/document analysis guide.
The study findings indicate that collection costs and revenue collection period have a negative and significant influence on profitability of TANESCO at the MBEYA region. Thus, there is need for the company to double its efforts in debt collection through the relevant department. In order to achieve this, Kenya Power should increase the coverage of the prepaid meters at the coast region and if possible across the country. Findings there is need to ensure billing accuracy in order to positively influence financial performance of the company. Further, the study found that TANESCO workers were the ones who read electric meter. It was also found that in some cases electric meters were not read accurately although most customers were satisfied with meter reading results. Moreover, the study found that most customers were not lower users of electricity.
The study recommends that TANESCO should withdraw from using electricity conventional billing system so that to invest more on prepaid system. In order to maintain accuracy of electric meter reading, both parts TANESCO and customers have to be involved. Moreover, the price of electricity should be reduced especially for domestic users in order to discourage them from using other sources of electricity which are not only harmful to their health but also to national economy.
The study concluded that the use of prepaid billing system has reduced revenue collection costs for TANESCO. In order to achieve this, TANESCO should increase the coverage of the prepaid meters at the coast region and if possible across the country. Findings there is need to ensure billing accuracy in order to positively influence financial performance of the company. The researcher really hopes that output from this study shall be of practical use to TANESCO, Mbeya Region. |
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