The cost- effectiveness of NED providing meters to each tenant in compound houses in northern area
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Date
2011
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Abstract
Separate metering is very dear to tenants of compound houses and a challenge to electricity utilities, particularly the Northern Electricity Department (NED). The study investigated the financial implications of installing meters for individual tenants of compound houses in Northern Area of NED. The study used analysis of variance (ANOVA) model to examine the consumption patterns of compound house accounts over time and from station to station. It was realized that tenants increased their consumption upon provision of separate meters, and that the increase was not as a result of time or place. A community survey was undertaken. The result of the survey on consumption conflicted with that of the ANOVA study. It could be that the respondents were of the view that their consumptions were reduced when they were given separate meters. This was probably based on assumption and not by serious consideration. The effect of the PURC tariff structure on the billing was examined. It was realized that in 58.6% of the sample, the amount was lower when the consumption was shared before calculation of the bill, than when the bill was computed before sharing it among tenants. Cost- benefit analysis revealed that a substantial revenue gain to Northern Area is achieved through separate metering. The net benefit in providing tenants with prepaid meters is higher at GH¢2,813,253.71. The inertia in getting 472,500 meters for this purpose are the capital cost and the fact that the department (NED) will need to take similar measures in other Areas.
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Thesis submitted to the Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters of Business Administration,