Mozambique electricity company reduces billing losses with prepaid meters

Mozambique Electricity (EDM) has reduced its billing losses by two percentage points by using the Credelec project to sell prepaid electricity.

The company launched the Credelec project in 1995 to allow customers to pay for electricity before they consume it. This technology uses consumption-monitoring tools to track usage, which the company says has stopped corruption and lowered administrative losses.

Eduardo Ali Pinto, the commercial director of EDM, says the drop in electricity theft has increased financial gains and created more room for public investment. The company manages fraud by suspending the electricity supply to customers involved in illegal schemes. EDM also applies charges for past consumption before it regularizes a contract. During the first few years of the project, the company collected about one billion meticais per month, which included 100 million meticais in recovered debts.