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FNB: Strong growth in prepaid electricity

FNB: Strong growth in prepaid electricity

Jul 14, 2014

FNB prepaid electricity has experienced a surge in sales as new municipalities across the country are added to its distribution, as prepaid becomes increasingly popular with consumers who want more control over their electricity bills.

“Our electricity sales have seen a strong year-on-year growth of 59% as consumers become more cost conscious and want to control their bills more carefully through prepaid services, as well as the fact that we have expanded our network of municipalities,” says Ravesh Ramlakan, CEO of FNB Service Provider.

The business unit recently expanded its footprint to include new municipalities such as eThekiwini, Emfuleni, Polokwane, Madibeng, Ditsobotla and Bela Bela. FNB covers over 100municipalities including the metros (City of Cape Town, City of Johannesburg, Ekurhuleni and eThekwini), private vendors and Eskom nationwide.

“We have worked hard to expand into new municipalities and, since adding these municipalities, have experienced a 62% growth in electricity sales between September 2013 and May 2014,” added Ramlakan.  The average user spends in the region of R360 per month on electricity.  “Interestingly, while customers are still predominately using Cellphone Banking to purchase electricity, since 2010 customers have moved increasingly towards the use of Online Banking and, more recently, the FNB Banking App as channels to purchase electricity,” says Ramlakan.

Cellphone Banking is the channel that the majority of customers use to purchase electricity at 51%, followed by Online Banking at 28% and the FNB App at 20%. “We have been tracking the increase in spend on electricity through the winter months June, July and August comparatively to the summer months of January, February and March. We have found that customers tend to spend on average 25% more on their electricity during the winter months”, continued Ramlakan.

Customers purchasing electricity through FNB’s channels are able to recharge without leaving their home through any one of its electronic channels. Customers also have access to records of their purchases and have the ability to reprint tokens and view transaction history.
“Consumers are  opting for prepaid as a way in which to control costs and prepaid also makes it easier for customers to keep track of their electricity spend,” concludes Ramlakan.

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