Purchase Experience of Low Income Prepaid Electricity Users in Tshwane, South Africa

Purpose: Residents and business owners in South Africa are encouraged to adopt prepaid electricity, in order to manage the monthly usage more efficiently. However, reluctance amongst some residents is still found. Design/Methodology/Approach: The fear of running out of credits amongst non-users raised the need to interview 389 low-income residents, by means of a structured questionnaire, on how they experience the buying of prepaid credits. Findings: Even though the results from the data collected were positive, especially when it comes to males and females, significant differences were observed between certain age groups, employment status and levels of income. These observations were noticeable when statements on the reasons for when they run out of credits, how this motivates them to pay for the use of the service; and whether they perceive the purchasing process as being convenient. Implications/Originality/Value: Seeing that the residents of certain cities within South Africa are still reluctant to use prepaid meters, the results of this study could be used, in order to refine the current awareness campaigns used by electricity providers, especially when targeted at those falling within a specific age and income group.