EDL considers prepaid accounts

Electricite du Laos (EDL), the largest electricity supplier in Laos , plans to introduce a new system requiring customers to pay for their electricity in advance.

EDL Acting Managing Director, Khammany Inthirath yesterday confirmed the state-owned enterprise was developing the new system in response to customers failing to pay their bills.

He said a large number of customers were late making payments, but he could not say how much money was owed to the company in unpaid accounts.

According to an electricity official, many customers pay bills once every few months, instead of immediately after the bills are issued. This negatively affects the company's cash flow.

Mr Khammany said the new system would enable EDL to collect money from consumers in advance, which would prevent customers accumulating large debts.

“We will do a test and then we will decide whether we will introduce the new system or not,” he said.

“The prepaid electricity system is widely used in our neighbouring countries of Thailand and Vietnam .”

EDL Deputy Managing Director Mr Savath Phoumalavanh the new system would also address customer dis putes about how much electricity was used each month.

Many people have filed complaints, saying staff collected incorrect data from their electricity meters and charged them for using more electricity than they really used.

He said the new electricity payment system would operate in a similar way to the prepaid mobile phone system, which requires customers to buy prepaid cards.

He said EDL was considering introducing the prepaid system in the four major provinces of Vientiane , Luang Prabang, Savannakhet and Champassak in September.

EDL would like to establish the new system with state organisations and major industrial units first. Initially the new system would be optional, but once it is fully operational consumers will not be able to access the electricity supply without a prepaid card. The prepaid cards will be sold in many places, like prepaid cards for mobile phones.

New electricity meters will also need to be installed if the new payment system is introduced.

By Ekaphone Phouthonesy. www.vientianetimes.org.la (Latest Update May 30 , 2008)