1. Joseph M. Forson & Kwabena Duah ELECTRICITY COMPANY OF GHANA PREPAYMENT IN GHANA Technical & Accounting Related Developments

2. APRIL 1994 COMMENCEMENT OF PREPAYMENT SCHEME AT PRESENT METERS INSTALLED: 86,015 INTRODUCTION

3. REGIONAL BREAKDOWN: ACCRA EAST= 26,181 ACCRA WEST= 24,541 TEMA= 5,294 ASH/WEST= 18,605 ASH/EAST= 11,394

4. INTRODUCTION MAIN OBJECTIVE  MAXIMISE REVENUE

5. INTRODUCTION IN THE RECENT PAST  REDUCTION IN GENERATED REVENUE  HIGH LINE LOSSES (29%) ( 1% loss reduction equivalent to ¢ 30 billion or $ 3.2 million annually )

6. PRESENTATION CONCERNS MONITORING (METERING/VENDING) OBSERVATIONS RESULTS

7. PRESENTATION FINDINGS ACTIONS TAKEN TREATMENT OF RECOVERED UNITS AND SALES CONCLUSION

8. CONCERNS E.C.G.  LOW MONTHLY SALES  HIGH LINE LOSSES CUSTOMERS  COMPLAINTS  BILL DISPUTES  CONCERNS DUE TO CERTAIN FRAUDULENT ACTIVITIES

9. MONITORING FIELD MONITORING OF PREPAID CUSTOMERS SPECIAL EMPHASIS: HOTELS, SUPERMARKETS, BANKS, LIGHT INDUSTRIES ETC. CHECKED ALL PURCHASE RECEIPTS/UNITS ADJUSTMENT

10. MONITORING CHECKED VENDING TRANSACTION CARDS CHECKED POSSIBLE METER BY-PASS/TAMPERING

11. VENDING CENTRES MANNED BY THIRD-PARTY RECONCILIATION : FIELD DATA WITH VENDING SYSTEM INFORMATION

12. OBSERVATIONS VARIANCES  VENDING SYSTEM/CUSTOMER DATA  UNITS ON CUSTOMER DATA DIFFERENT FROM UNITS IN THE VENDING SYSTEM  UNITS ON CUSTOMER DATA HIGHER THAN THAT OF THE VENDING SYSTEM

13. OBSERVATIONS ADJUSTMENTS ON BOTH VENDING SYSTEM AND CUSTOMER DATA WERE NOT AUTHORISED TAMPERING OF TRIPPING MECHANISM

14. RESULTS VENDING FRAUD  Vending corrections/reversals UNITS ADJUSTMENT FRAUD  Un-authorized issue of units METERING FRAUD  Meter tampering/bypass

15. FINDINGS VENDING FRAUD  Perpetrated by vending cashier UNITS ADJUSTMENT FRAUD  Connivance: cashier/customer/field staff METERING FRAUD  Perpetrated by customer/agent

16. ACTION TAKEN VENDING/ADJUSTMENT FRAUD  ALL METERS REPLACED  LOST UNITS VALUED AND PAID BY THE THIRD PARTY

17. ACTION TAKEN METERING FRAUD  RESPECTIVE CUSTOMERS SURCHARGED  LEGAL ACTION TAKEN AGAINST CULPABLE CUSTOMERS

18. RECOVERY VENDING/ADJUSTMENT FRAUDS  Total recovery:  1.2 GWh ~ ¢1.8 billion ($196,000)

19. RECOVERY METERING FRAUD TOTAL RECOVERY  3.3 GWh ~ ¢ 3.9billion ($424,000)

20. TREATMENT of recovered units & value into the Billing System NON-RELIANCE OF PREPAYMENT FACILITY TO RECOVER UNITS SET UP ILLEGAL CUSTOMER ACCOUNT IN THE CREDIT BILLING SYSTEM(ICA)

21. TREATMENT of recovered units & value into the Billing System BREAKING THE TOTAL ASSESSMENT INTO CURRENT YEAR (UNITS & VALUE) AND PREVIOUS YRS (VALUE) RAISING OF DEBIT SALES ADJUSTMENTS OF BOTH UNITS AND VALUE (CURRENT YEAR) INTO ICA

22. TREATMENT of recovered units & value into the Billing System RAISING OF DEBIT ADJUSTMENT (PREVIOUS YEARS) VALUE ONLY INTO ICA [Finance division copied for Journal voucher] PAYMENTS ARE EFFECTED INTO THE ICA TO CLEAR THE DEBT

23. EFFECTS THE UNITS & VALUE ON THE SALES AND LOSSES INCREASE IN SALES FOR THE CURRENT YEAR UNDER REVIEW REDUCTION IN THE CURRENT YEAR SYSTEM LOSSES  25% as at December 2004  23% as at March 2005 OVERALL INCREASE IN GENERATED REVENUE [as payments are effected]

24. CONCLUSION VENDING SOFTWARE ENHANCED NEW SYSTEM CONTROLS INTRODUCED PROPER ACCOUNTING PROCEDURES PUT IN PLACE

25. Thank you