Municipalities across South Africa are grappling with managing utilities, ensuring accurate billing and collecting revenue from their large power user (LPU) customers. Macrocomm has been instrumental in helping municipalities recover electricity revenue that is lost either through technical or non-technical means. Macrocomm achieves revenue recovery through a combination of advanced metering technology and strategic management practices, using cutting-edge engineering, ICT technology and processes for the reconstruction of LPU accounts.
Implementing these systems will significantly help reduce electricity theft and improve billing accuracy, through the provision of real-time data analytics on electricity usage. Additionally, Macrocomm’s solution includes energy management systems and detailed consumption and exception reporting, which helps municipalities better manage their resources and reduce wastage.
The accurate and real-time focus on data analysis of electricity consumption patterns and identifying areas of loss, helps municipalities implement targeted interventions to improve efficiency and revenue collection. Overall, Macrocomm’s approach not only helps municipalities recover lost revenue, but also enhances the municipality’s ability to provide reliable and accurate electricity consumption billing to their residents.
Poor management of utilities has been highlighted in numerous articles. BusinessTech recently published an article that underscores the significant financial losses municipalities face due to inefficient systems, outdated technology and a lack of technical expertise. These challenges not only affect service delivery but also contribute to the growing municipal debt to Eskom.
Macrocomm’s innovative approach to LPU account reconstruction, through the recovery of under-billed accounts
This solution will bring immediate financial relief to municipalities, while securing accurate long-term revenue recovery. Macrocomm’s solution seeks to identify and address root causes of the under-billed LPU accounts.
Through a comprehensive audit and account reconstruction process, Macrocomm helps municipalities recover revenue lost either through faulty meters, technical failures, incorrect meter set-up and/or non-technical losses such as theft and tampering. The process commences with a detailed audit of existing advanced metering infrastructure (AMI), the replacement of non-functional meters and ensuring that all meters are automated meter reading (AMR) compliant, thereby guaranteeing ongoing, accurate meter readings and billing.
"The use of our advanced AMR system provides municipalities with accurate, real-time data, allowing for a seamless and transparent mechanism for an improved municipal management of LPU accounts," said Sivi Moodley, Group CEO at Macrocomm.
Macrocomm’s engineering services ensures that all aspects of the LPU reconstruction adheres to NERSA guidelines and industry standards. Forensic accounting plays a key role in analysing and reconstructing information to identify discrepancies in the billing. The process not only corrects historical errors but also assists municipalities with a more accurate and consistent revenue collection going forward.
“Through the work undertaken by Macrocomm on LPU account reconstruction, we have been able to recover a considerable amount of lost revenue from electricity. This has allowed us to service our debt with Eskom,” said Kenneth Samolapo, Acting CFO at Sol Plaatje Local Municipality.
The enhanced revenue not only helps stabilise municipal finances but also improves the municipality’s ability to service its financial obligations.
In addition to addressing the immediate revenue enhancements, LPU account reconstruction services also offers long-term improvements for municipalities by transitioning from outdated legacy metering infrastructure to advanced automated meter reading. This ensures consistent and accurate future billing.
“We’ve structured our Smart LPU Reconstruction Solution to ensure that municipalities, regardless of their financial situation, can take advantage of our expertise and technologies. Our objective is to realise under-recovered revenue for our customers, while securing future revenue through smart technology and accurate billing practices,” said Moodley.
The impact of LPU reconstruction cannot be understated. As municipalities across the country continue to face challenges in managing their utilities, addressing billing inaccuracies and improving revenue collection are critical steps towards revenue recovery and financial stability.
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