EFFECT OF PREPAID METERING SYSTEM ON CUSTOMER SATISFACTION IN MINNA, NIGER STATE, NIGERIA

Abstract

The state of metering in the Nigerian electricity industry requires immediate attention in order to bridge the large gap in customer satisfaction. Energy consumers in Nigeria have long complained about Distribution Companies' unfair billing practices, exorbitant monthly electricity bills resulting from meter estimation rather than accurate meter reading and calculation based on uninterrupted electricity use. The aim of this study is to examine the effects of prepaid metering system on customer satisfaction in Minna, Niger State. In carrying out the study, the designed questionnaire was administered to 393 randomly chosen respondents drawn from AEDC prepaid meter customers out of which 344 responded generating a response rate of 87.5%. In the study, four research questions were formulated and answered. The data derived were subjected to Pearson’s correlation and multiple regression models. The major findings from the study showed a significant, moderate and positive relationship between the prepaid metering system and customer satisfaction. Additionally, three significant predictors, Affordability, Availability and Flexibility with a regression coefficient of 0.263, 0.127 and 0.189 respectively were positively related to the criterion in the regression model. The result implies that, since the introduction of the prepaid metering system in Minna, users have become more conscious of their electricity consumption, and have taken energy saving practices seriously. Further findings revealed that it is time consuming and expensive to acquire the prepaid metering system and user also experienced delay in receiving and installing of their meters among others. In conclusion, prepaid meter users in Minna have enthusiastically welcomed the introduction of the prepaid metering system to the city, and they believe that the ability of the distribution company to understand customer needs is an important factor in creating customer satisfaction as well as the company’s readiness to effectively address any operational challenges or other challenges that may arise. The study therefore recommends the provision of a smart metering system, good customer care units and a marketing campaign for better knowledge of the prepaid metering system.