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‘Prepaid power’ gains support
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Posted on Nov 24 2004
Delinquent accounts and billing disputes may no longer be a problem for cash-strapped Commonwealth Utilities Corp. with the possible implementation of the prepaid power program.
CUC deputy director Bernard Villagomez announced in a board meeting yesterday that a New Zealand-based company is interested in helping CUC test and implement a program where participating customers would pay for electricity in advance.
Similar to prepaid call cards sold by telecommunications companies, the prepaid power program would allow customers to buy electricity in different denominations. The prepaid meters allow customers to check how much electricity they have left. Once the customer consumes all the prepaid electricity, his power would automatically go off.
Villagomez said Arthur D. Riley & Co. Ltd., made a presentation of the technology to the CUC staff last October. The firm also offered to install an initial 500 prepaid meters and the accompanying software, as well as do the marketing for CUC.
Villagomez noted that prepaid power offers a good solution to the utility firm’s problems with delinquent customers and billing disputes. The program will also be beneficial for customers as it will allow them to budget their expenses for power.
Members of the CUC board of directors agreed that prepaid power was a good concept. The only concern they raised was the actual implementation of the program.
Board member Velma Palacios noted that a pilot project involving 500 customers may not be practical. Rather, CUC should test the idea in a small community of less than 100 customers, which could later be used as model for implementation, she said.
This way, she added, CUC could minimize the loss, should the firm later decide against implementing the project Commonwealth-wide.
For his part, board member Allen Perez said that CUC must first ensure that there are funds available to execute the project. He noted that the utility firm is currently faced with a serious cash flow situation, and should be very careful in approaching every disbursement.
Nevertheless, the board instructed the CUC staff to gather more information about the prepaid power program.
