METERING, BILLING/CRM MIDDLE EAST AND NAPIC 2006

THINK TANK SESSION

NICO SINGHJOHANNESBURG WATER (PTY) LTDSOUTH AFRICA

COMMON DISTRIBUTION SYSTEM

PREPAYMENT CHALLENGES• Total of 171 000 properties to be equipped with free-payment• Ideological debate around the concept of prepayment and user-pay

principle.• Project scheduling allowing for multiple contracting and

procurement for Super-Blocks ( ± 120 000 meters)• Free-Payment technology

– SANS 1529-9 (Nov 2003) - Strict Compliance…Dec 05 rev– STS enhancement or an urgent aligned alternative (CDS)– Meter Technology for JW Customer

• Affordability for the consumer• Vandalism, Tampering and Illegal Connections • Vending technology reliability, infrastructure, convenience and

accessibility • Customer Service and Complaints Handling• Preventative maintenance programmes and associated costs• Court challenge around constitutionality of prepayment• (inadequate free basic water, procedural fairness, reliability of

technology)

TECHNOLOGY MANAGEMENT

• SANS 1529-9 promulgate in Nov 2003• Within 2 years, 3 meter suppliers complied with

standard & obtain FULL TYPE APPROVAL• In terms of experience, capacity and resources

accelerated growth of suppliers to comply with standard

• Meter suppliers absorbed costs associated with enhancements, research and development and testing

• Stimulate an open market • Creation of BEE opportunities

ENHANCED eBUSINESS

• PREPAYMENT MMS link to HANSEN and Venus (Flat file)

• ISD / TECHNICAL PROJECT DATABASE (Pilot completed)–Use of PDA’s

• SAP ISU INTERFACE (Still in initial development phase)

• COMMON DISTRIBUTION SYSTEM (CDS)…tender phase

• PREPAYMENT TRACKING SYSTEM–Use of PDA’s

(Promotion of the use of Internet, GPS, GPRS, PDA’s)

VENDING ADMINISTRATION

• Limited to existing small and micro businesses • Currently using the CoJ Cash Office – familiarity• Individual vendor locations will be restricted to the

service-provided area of JW and within an approximate 2,5 kilometre radius around his/her business location to ensure: - Consumer convenience, and- Reasonable income per vendor.

• Commission percentage payable is 10% reviewed on a contractual basis.

• Current Vending Systems are proprietary• Currently initiated the development of a CDS

TYPICAL INSTALLATION TYPES USED

Not Recommended-Ground Level

Preferred - Above Ground level

DISPLAY

METER TYPE 1 TPS

Prepaid Meter Information Transfer Unit

Meter Management System Portable Vending Unit

SPLIT SYSTEM with SMART CARD

METER TYPE 2 TPS

METER TYPE 3 TPS

JW MAIN METER FEATURES• Displays/Indicates “FREE” when in FBW• VOLUME (Liters) of FBW remaining• FBW supply options ~ 200l/day or 6kl/month• The VOLUME (Liters) based on the ACCUMULATED

CREDIT and CURRENT TARIFF• LOW CREDIT Warning CURRENT TARIFF Price (R/Kl) The

PREVIOUS MONTH end reading (Proprietary)• POSSIBLE LEAK detection • TAMPER status • Option to LOCK meter

DESIRED METER FEATURES

• Audio warnings• Luminous displays during poor visibility• Variable credit limitation settings • Storage of the last day of month credit reading• Automatic meter reading

• (Assess NEED and then impact on cost of meter, system performance, user friendliness and battery source)

PREPAYMENT COSTS

Excludes removal and re-installation

R 200/unitMeter replacement Battery/Recalibration

In absence of Open Standard renting is preferable

R 10 000/unitR 500/month

Maintenance Equipment

In absence of Open Standard renting is preferable

R 10 000/unitR 500/month

Vending Equipment

R 20 000/monthInstallation

Imperative during the project phase life-cycle

R 50 000/monthSite Support

Dependant on typeR 20 – R 60Information transfer unit

Dependant on volume and meter type

R 850 – R 950New meter & box

REMARKCOSTITEM

COMMON DISTRIBUTION SYSTEM

• Currently financial, operational and maintenance function of theproprietary systems.

• Reputable supplier to either lease or purchase an electronic management system with associated ancillary services and hardware allowing for the integrated financial and technical management of its prepayment metered customer-base from a Common System.

• Through the introduction of common system JW intends integratingit’s:– various proprietary Total Prepayment Systems (TPS), currently

procured and systems that may procured in future; and – current and future conventional customer-base, within all

prepayment operational areas. – creating an enhanced TPS to improve:

• management, operation and maintenance of its prepayment and non-prepayment activities; and

• customer service and convenience.• CDS shall consist of a Common Management System and Common

Vending Units

CDS SCHEMATIC LAYOUT

P rim a ry (D e fa u lt)C o m m o n D a ta b a se

S e c o n d a ryT ra n s m iss io n

N e tw o rk

P rim a ryT ra n s m iss io n

N e tw o rk

B illin g &R e v e n u e

S e c o n d a ry (B a ck -u p )C o m m o n D a ta b a se

P ro p rie ta ry T P S s

1

2

3

....

n

C M S

S e e D e ta il 2

O p e ra tio n &M a in te n a n ce

C V U

S e e D e ta il 1

H a n se n o r S A P IS -U

THANK YOU

Nico Singh Johannesburg WaterProject Manager - PrepaymentCell Number: 082 339 8544Work Number: 011 – 946 0600Fax Number: 011 947 1353E-mail: nicos@jwater.co.za