What are the functions of prepaid smart meters?

The prepaid function of smart meters transforms the passive payment of traditional electricity consumption into active management through the "pay first, use later" model, which has a positive impact on users, power suppliers, and social energy management. Its core role is reflected in the following six aspects:

1、 Optimize user electricity usage behavior and cultivate a sense of conservation

Budget visualization

Prepaid electricity meters display real-time remaining electricity or electricity bills, allowing users to intuitively understand their electricity costs. For example, household users can check their remaining electricity bills through a mobile app and actively adjust their electricity usage habits (such as reducing air conditioning usage time) when the balance approaches a threshold to avoid excessive consumption.

Avoid late fees for overdue payments

In the traditional postpaid model, users may delay payment due to negligence or cash flow issues, resulting in late fees. The prepaid model completely eliminates the risk of overdue payments, and users do not need to worry about their credit records being affected by overdue payments.

Special scenario management

Rental group: Landlords can set up prepaid electricity meters to avoid tenants defaulting on electricity bills, while tenants can independently control their electricity expenses.

Temporary electricity usage: For short-term electricity usage scenarios such as construction sites and exhibitions, the prepaid model allows for on-demand recharging to avoid resource waste.

2、 Reduce the operating costs of power supply enterprises and improve management efficiency

Reduce overdue losses

Power supply companies do not need to invest a large amount of manpower to collect electricity bills. The prepaid model directly controls power outages through technological means, significantly reducing the bad debt rate. According to statistics, after the implementation of prepayment in a certain region, the arrears rate has decreased from 3% to below 0.5%.

Automated reconciliation and settlement

Real time synchronization of data between the electricity meter and the backend system, automatic generation of reports for recharge, electricity consumption, and trip records, reducing manual verification errors and improving financial efficiency.

Remote operation and maintenance support

The power supplier can monitor the status of the electricity meter through remote communication (such as 4G, NB IoT), promptly detect abnormalities (such as electricity theft, faults), and remotely issue instructions to adjust parameters, reducing on-site inspection costs.

3、 Promote fair distribution of energy and safeguard the rights and interests of vulnerable groups

Preventing Resource Abuse

In public areas such as dormitories and shared apartments, prepaid electricity meters can prevent individual users from using electricity excessively, resulting in uneven overall cost sharing and ensuring fair use.

Supporting low-income groups

Users can flexibly recharge according to their economic ability, avoiding pressure caused by one-time payment of high electricity bills. Some regions have also introduced a "tiered prepayment" policy, providing discounts to low electricity users.

Emergency power supply guarantee

During natural disasters or power shortages, prepaid electricity meters can prioritize meeting the electricity needs of users who have already recharged, avoiding resource waste.

4、 Promote refined energy management and assist in energy conservation and emission reduction

Real time load monitoring

Prepaid electricity meters can record time-sharing electricity consumption data (such as peak and valley periods), and users can optimize equipment usage time (such as nighttime charging) by analyzing electricity consumption patterns to reduce peak loads.

Requirement response support

Power supply companies can implement demand side management in conjunction with prepaid systems, such as guiding users to reduce electricity consumption during peak hours through price incentives to alleviate grid pressure.

Integration of renewable energy

For users who install photovoltaic power generation, prepaid electricity meters can support bidirectional measurement, accurately record on grid electricity and self consumption electricity, and promote the development of distributed energy.

5、 Enhance electrical safety and reduce the risk of accidents

overload protection

Prepaid electricity meters usually integrate overload protection function, which automatically trips when the electrical load exceeds the rated value, preventing the line from overheating and causing a fire.

Electricity theft prevention

The electricity meter can record abnormal electricity usage behavior (such as reverse current and sudden voltage changes) and notify the power supply through remote alarm, effectively combating electricity theft.

Quick fault location

The trip record of the electricity meter can help the operation and maintenance personnel quickly locate the cause of the fault (such as arrears, overload, equipment failure), and shorten the power outage repair time.

6、 Support policy implementation and industry innovation

Ladder electricity price adaptation

Prepaid electricity meters can be combined with tiered electricity pricing policies to automatically switch unit prices based on electricity consumption, guiding users to save electricity. For example, after implementing tiered electricity pricing in a certain region, the average electricity consumption of users decreased by 15%.

Fundamentals of Electricity Market Reform

In an open electricity market environment, the prepaid model provides convenience for direct transactions between retailers and users, promoting the formation of competitive electricity prices.

Integration of the Internet of Things (IoT) ecosystem

As a part of smart homes, prepaid electricity meters can be linked with smart sockets and appliances to achieve automated electricity management (such as automatically shutting down non essential devices when the balance is insufficient).

Practical application cases

Rural electrification in India: The Indian government has solved the problem of electricity bill collection in remote areas through prepaid electricity meters, and users can recharge through mobile payments, increasing power coverage by 40%.

Dormitory Management in Chinese Universities: After a university installed prepaid electricity meters, the per capita electricity consumption of students decreased by 20%, and administrators no longer need to collect electricity bills for each dormitory individually.

European Smart Grid Pilot: A community in Germany uses prepaid electricity meters combined with dynamic electricity prices to encourage users to charge during off peak periods, reducing grid load fluctuations by 30%.