How does PHCN calculate the number units for prepaid customers

KoliTech

Posted by Felix Okoli on Wednesday March 5, 2014 at 17:51:30:

Are you a prepaid electricity user in Nigeria? Well I guess by now you'd already be used to the prepaid billing system which works a bit like the GSM recharge card system.

For most Nigerians who are already used to GSM prepaid billing system, it is actually a budget friendly system like all prepaid systems are designed to as users only pay for what they use and nothing more. This is similar to Nigeria's new electricity billing system which is now a prepaid one as people are only meant to pay for electricity actually consumed. Well, if you were living in a country where electricity supply has been dwarfed by a huge demand, then you;d understand why power generators are one of the best selling products in Nigeria.

PHCN's prepaid billing system is an electricity billing system designed for customers who pay it forward. It a departure from the old post paid billing system which actually did not help the electricity company since it encouraged a lot of debtors both from the public and private sector. Gone are the old days of post paid billing or perhaps "Going" as more and more Nigerians now migrate to this new platform. In the old days, it was common to see PHCN or NEPA officials, as there were commonly known, parading from home to home disconnecting electricity lines just to enforce their "no pay no light" policy.

With the new prepaid billing system, customers now only use power that they've actually already paid for in advance and I support this system as it encourages both the company and subscribers to each do their part in the contract. People will no longer have to pay for electricity they didn't use and the electricity company also does not have to supply power to non paying customers.

How does the new billing system really work? What rate does the PHCN use to bill her customers? Well, like most other prepaid power systems, it is based in Kilowatt hours(KWH) which is charged at about N12.87 per KWH as at the time I wrote this.

Ordinarily, a first time user may not really understand how this billing system in Nigeria works since one might just think that a payment of say N12870 would give him 1000 units of power or 1000kwh assuming the rate is at N12.87 per KWH. The case is a bit different as there are some other variable and fixed charges that would actually reduce the final number of power units the subscriber gets.

In Nigeria, the prepaid bill also includes deductions like Value Added Tax(0.05) and a fixed monthly charge of about N500 per month. The VAT is a variable charge which is normally charged to the subscriber for both the fixed monthly charge(Charge VAT) as well as value of units purchased(Units VAT).

So, for someone paying a full amount of say N12870, there would be some deductions first in order to arrive at the final balance that would then be divided by the power rate to get the number of units to be credited to the subscriber.

While some customers may be given more units, others may be given less depending on whether they are owing any outstanding debts. Outstanding debts are mainly debts not yet paid and this mostly includes fixed monthly charges that have accumulated over many months and have not been paid for. Those will be deducted when the customer goes to make his next payment for electricity units.

Let's assume a subscriber pays N12870 and the monthly fixed charge is N500 while the power rate is N12.87 with VAT as 5%, then it means that he will get about 900 units of KWH after that payment has been made.

So, Mathematically:
Units = [Amount - (VAT Units + Charge VAT + Monthly charges)]/Tariff

Units (in KWH): 911
Units VAT: NGN 617
Tariff: NGN 12.87
VAT on Fixed monthly charge: NGN 25
Deductions = NGN 525
Balance = NGN 12,345

Alternatively, you can use our PHCN Prepaid Bill calculator. It is still in beta stage.

Why you need to calculate how many units you are getting
===================
- To know if you are being cheated or not
- To estimate how many units you are actually getting

Question: How many units of power will I get if I pay N5000 a month?

Answer: Well, assuming the monthly charge is N500, the tariff is N12.87 and VAT is 5%, then using our online calculator, the results are as follows:

Units: 330 KWH

This means that you'd get at least 330KWH

However, assuming there is no monthly charge and this is normally the case when you make 2 payments in a month, then the maximum units you'll get will be at around 370 Units of KWH.

Checkout our PHCN Prepaid units calculator

Comments:

Re: How does PHCN calculate the number units for prepaid customers Reply by damilare on Thursday May 29, 2014 at 14:31:11:

There is no different between phcn and ibedc cos both are incredible of their work

Re: How does PHCN calculate the number units for prepaid customers Reply by Oluwadamilare on Saturday October 18, 2014 at 20:59:33:

If i want 2 buy d prepaid meter which step shud i take

Re: How does PHCN calculate the number units for prepaid customers Reply by Felix Okoli on Saturday October 18, 2014 at 20:59:33:

I think the normal thing is to apply at the PHCN office.

Re: How does PHCN calculate the number units for prepaid customers Reply by ben on Monday November 10, 2014 at 21:56:20:

What is d current charging rate per KWH on post-paid bill by PHCN

Re: How does PHCN calculate the number units for prepaid customers Reply by Joseph on Saturday November 1, 2014 at 2:13:36:

Thank you for your enlightenment on this platform.
Please, what is the normal procedure for getting the regular black meter?

Thank you.

Re: How does PHCN calculate the number units for prepaid customers Reply by Felix Okoli on Saturday November 1, 2014 at 2:13:36:

You will need to make a formal application to the PHCN office for it.

Re: How does PHCN calculate the number units for prepaid customers Reply by Emmanuel Okere on Thursday November 27, 2014 at 5:25:56:

please what does it literally mean that one has a unit of electricity to use. i mean d loading requirement that can consume a unit of electricity. thank you.

Re: How does PHCN calculate the number units for prepaid customers Reply by Felix Okoli on Thursday November 27, 2014 at 5:25:56:

1 unit is like 1kw of power. It will get exhausted depending on how much power your electronics consume.

Re: How does PHCN calculate the number units for prepaid customers Reply by Godwin George on Tuesday April 14, 2015 at 8:8:10:

i cant give phcn my morning to bye any metal for me

Re: How does PHCN calculate the number units for prepaid customers Reply by yomiibrahim on Saturday April 25, 2015 at 7:19:38:

How can I calculate my monthly consumption personally based on the energy usage of my appliances pls?

Re: How does PHCN calculate the number units for prepaid customers Reply by Felix Okoli on Saturday April 25, 2015 at 7:19:38:

If you are using a prepaid meter, your monthly consumption would be the units you have already purchased, loaded and consumed. It is normally displayed on the meter in digits. If it's a post paid meter that reads, then it would be the first reading at the beginning of the month subtracted by the last reading at the end of the month. You can as well get an independent power usage monitor and install at your home and close to your prepaid meter to monitor your power consumption.

Re: How does PHCN calculate the number units for prepaid customers Reply by judah on Tuesday July 21, 2015 at 7:54:1:

what is rate charge for industry's and company

Re: How does PHCN calculate the number units for prepaid customers Reply by OLABISI on Tuesday May 1, 2018 at 12:20:38:

I recently informed a NEPA official that I would Like to connect my shop which is right in front of my house to d prepaid meter we use at home. He said uta possible but that my plan will now be commercial. I want to know if there are cost implications to commercial plan in our tariff and billing, because he later checked the meter and noted down some things. The shop has not been connected yet but from my calculations the tariffs has already increased. What can I do about this and how can I correct this?

Re: How does PHCN calculate the number units for prepaid customers Reply by Hero David on Wednesday June 20, 2018 at 15:8:41:

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