Let’s unpack prepaid transactions to help you understand the various components that make up your purchase. Very often we receive a call from an end user that asks this very question; what am I being charged? This amount I see on my receipt does not make sense!
Going back to source, one of the key responsibilities of a Municipality is to provide infrastructure and services to the properties within its boundary, more specifically electricity and water and for that, the property owners whether residential or commercial must pay for it. Not only does the municipality charge for the units consumed but they also include other charges to cover demand, maintenance and administration of the network.
Very often these properties especially where there are multiple occupants have prepaid sub meters installed.
When a prepaid meter is purchased and installed on the property the service provider who is hosting and managing the prepaid meter transactions opens up a meter account for that prepaid meter where all the information concerning the purchases, ownership and tokens are stored.
A prepaid transaction usually consists of 4 to 5 components depending on the status of the meter account at the time of purchasing the token. These components include:
The system will first deduct the channel fee then arrears if applicable, then vat before applying the set tariff to calculate the number of units for the token.
There are 2 types of metering, primary or municipal and secondary also called sub metering. In sub-metering there will be fee charges for customers to be able to vend and you should understand your fees and tariffs if you wish to make sense of how much you are paying.