About the Eneo Prepaid Billing

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Prepaid tariffs will be aligned with post-paid tariffs, in accordance with an ARSEL press release signed on 26 October 2024. What does this mean?

Following the latest decision by ARSEL, the regulator, dated October 2024, requiring Eneo to align prepaid and post-paid rates, customers in both consumption modes will be billed on the same basis: the May 2012 rates schedule.

This alignment supersedes the provisional rates applied by Eneo to prepaid customers, which differed from the 2012 rates as part of the launch of the prepaid pilot project.

All Eneo prepaid and post-paid customers will now be billed at the same rates. According to ARSEL, this is to ensure fairness and compliance, since the only tariff decision in force is that of 2012, which was previously applied only to customers paying after receiving the bill.

Overall, there are 3 priorities with this alignment

1. Fairness: This involves guaranteeing that all customers, regardless of their consumption method (prepaid or post-paid), are billed on the same basis.
2. Transparency: Guaranteeing clarity and the ability for all our customers to understand our rates.
3. Simplicity: Simplifying the basic rate structure, making it easier for customers to understand their bills.

What will change? How do we understand our rates from now on?

From November 1, 2024, there will be no change for post-paid customers. For prepaid customers, however, there will be changes. Dear prepaid customers, bare this in mind:

As with post-paid customers, you are either a residential customer, i.e., a household, or a business customer, i.e., you use electricity for an economic or commercial activity.

As with post-paid, your consumption determines your tariff bracket. The customer's usual average consumption and usage are used to assign him or her to a tariff bracket under the ARSEL decision of May 2012.

This operation does not change the underlying principle of setting electricity rates in Cameroon: moderate consumption, low rates; “comfortable” consumption, higher rates.

Similarly, the basic principle underlying the prepaid system remains unchanged. During a cycle running from the 1st to the last calendar day of each month, billing is still based on the cumulative kWh purchased.

The prepaid meter continues to be a solution that offers genuine advantages: greater autonomy, improved budget management, greater flexibility and greater security.

What changes:

There will no longer be customer segments based on installed power; each customer is either residential or non-residential.

There will no longer be customer segments based on installed power; each customer is either residential or non-residential. The customer's usual average consumption and usage are used to assign him or her to a consumption bracket under the May 2012 decision.

If a customer's consumption exceeds the upper limit of their initial allocation bracket within the same month, the additional kilowatt-hours purchased will be subject to the comfort tariffs set out in the published schedule (see steps 2 and 3 of the schedule).

At the end of each month, an assessment of the customer's average consumption over the last 6 months is used to classify the customer in the corresponding regulatory bracket.  The rate for this bracket will be applied the following month.

Any consumption in excess of 220 kWh will be subject to VAT from the 1st kWh purchased.

Assuming that you consume virtually every kilowatt purchased within a month, you can validly calculate your average monthly consumption over the last six months using information from the interface you have in your living room.

Enter the following codes to see your consumption for each of the last six months:

820 consumption for the month M-1 CM1

821 consumption for the month M-2 CM2

822 consumption for the month M-3 CM3

823 consumption for the month M-4 CM4

824 consumption for the month M-5 CM5

825 consumption for the month M-6 CM6

Your average monthly consumption over the last six:

The sum of monthly consumption over the last six months divided by 6

How to identify your consumption bracket

Once you calculate your average monthly consumption, you can know under which consumption bracket your rate and VAT fall.

Consider the following example,

if your average monthly consumption is 100, then you are within the 0-110 bracket. Your rate is 50 CFAF No VAT applied.  

Assuming you make a purchase of 2000, you will receive 2000/50 kWh, i.e. 40 kWh

As soon as your total purchases reach 110 kwh, your next purchase will be billed at 94 CFAF. So, for example, if you go - beyond the 110 mark and refill 1000 CFAF, you will receive 10.63 kWh and your total consumption for the month will be 120.63 kWh.

At the end of the month, the system will calculate your average monthly consumption over the last six months and place you in the corresponding bracket.
 

“I made a refill of CFAF 2,000 this morning, and I received 40 kWh. I'm so lucky! Is it that my rates are not aligned or what?” exclaims Miss Ananga.

Ms. Ananga, whose average monthly consumption over the last 6 months is between 0 and 110 kWh, is billed 50 Francs for her purchases.

It should be noted that over 70% of Prepaid customers are in the 0 to 110 bracket and pay 50 Francs per kWh and no VAT.


Case Study: A customer in the 111-220 bracket

“I am a household customer with meter number 3701549928. I refilled CFAF 12,000 and got 151 kWh instead of the usual 179.5 kWh. Eneo, could you please explain what's going on?” ~ Daouda Youssouf.

To understand your billing rates, you first have to calculate your average purchases over the last 6 months.

Calculation: 

(173 + 176 + 178 + 183 + 182 + 185)/6 = 179.5 kWh

The customer is in the 110 - 220 kWh bracket. And the rate for this bracket is as follows:

1. Applicable rate = 79 FCFA from the 1st kWh bought within the month.
2. TVA shall apply from the 1st kWh bought.
3. As soon as cumulative consumption/purchases exceed 220 kWh, additional kWh will be billed at 99 CFAF (Comfort Rate) and VAT shall apply.

So, for a refill of FCFA12,000, Daouda Youssouf received 151 kWh. This amounts to 12,000 CFAF / 79 CFAF per kWh = 151 kWh.

“I'm a household customer with an average monthly consumption of 267kWh. I refilled CFAF 7,500 and got 79 kWh.  I'd like to understand my billing rate.” ~ Mrs Ella Oyono.

The customer's average consumption is 267kWh. So, she is in the 221-400 bracket and pays 79 CFAF, with VAT applied from the 1st kWh.

Re made a purchase of CFA F 7,500

VAT was applied.

VAT per KWH is 79 x 0.1925 = 15.2

The cost of kWh plus tax is 79 + 15.2= 94.2

In other words, the number of kWh he receives for his 7,500 refill = 7,500/94.2 = 79 kWh

In the course of the month, Mrs. Ella Oyono will make other refills. And each time she makes a purchase, the system calculates the sum of kWh purchased in the month by adding up the number of kWh from the previous purchases.

As soon as this total reaches 400 kWh before the end of the month, the next purchase will be billed at 99 CFAF, as provided for in the rate schedule.

The cumulative monthly consumption will now be in the 401-800 bracket. However, it is not possible to apply the rate for this bracket to all the kWh purchased from the beginning.

The 99 CFAF rate (comfort rate) applied helps to reduce the loss of revenue resulting from a poor ranking.

For example, assuming that the customer exceeds his consumption limit for the month with a total consumption of 420 kWh.

She pays the first 400 kWh at 79 CFAF + VAT, i.e. 400 X 94.2 = 37,687 CFAF. Then 19 kWh at 99 CFAF + VAT, i.e. 19 X 118.2 = 2,243 CFAF.

That brings her monthly expenditure to: 37,687+ 2,243= 39,930 CFAF

If the system were to adopt a strict alignment, his total monthly consumption of 420 kWh would put him in the 401-800 bracket, which has a rate of 94 CFAF plus VAT

Rates plus VAT: 94 CFAF X 0.1925= 112.94

This customer’s normal monthly expenditure: 420 X 112.94 = 47,434 CFAF

With Post-paid, the application of rates and VAT takes everything into account and the customer who consumes 420 kWh pays 47, 434 CFAF.

Prepaid, the customer consuming 420 kWh, with an expenditure of 39,930 CFAF, saves 7,500 CFAF. Which is a plus for him.