Prepaid Metering as an Instrument for Power Development

Abstract

One of the important concerns in Bangladesh that provoke the power crisis scenario in Bangladesh is power theft. Power theft can occur in numerous forms such as stealing, meter tampering, billing irregularities, and unpaid bills. Theft of power in Bangladesh in 2016 was estimated to be 14% which is around 2400 megawatt hour (MWh). This is quite alarming situation since, at this rate, power worth approximately BDT 5 billion is stolen from the national grid leading to serious negative implications on the Bangladesh economy. Introduction of a prepaid metering system can reduce the power theft in Bangladesh. It is not only that the consumers have benefitted from the implantation of the prepaid metering system, but rather the power companies have also benefited in some ways, primarily through improved cash flows and a decrease in non-technical losses, along with relatively less amount of overhead expenses. The increased revenue and no outstanding bills with better monitoring and protection from conventional-meter tampering can also play important roles for future energy security in Bangladesh.