Browsing by Author "Mabilo, Desmond"

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    Customer value associated with electric smart meters in South Africa
    (University of the Witwatersrand, Johannesburg, 2023) Mabilo, Desmond; Oba, Pius
    Problem definition: Electric smart meters are gaining popularity in utilities and municipalities across the globe as a smart grid driver introducing various benefits to utilities such as security of revenue and the reduction of resources waste, among other factors. However, various studies across the globe indicate mixed responses on the value that electric smart meters bring to end customers. In this study, the customer value associated with electric smart meters is interrogated in the context of residential South African customers. Academic/Practical relevance: The theory of customer value which is premised on the difference between the benefits and costs of electric smart meters is adopted. The benefits and costs of electric smart meters are looked at from an operations management perspective, where the benefit elements are the five external operations performance objectives (Speed, Cost, Quality, Flexibility and Dependability) and the cost element refers to the costs that customers incur to access or utilise the capabilities of smart meters. Methodology: A quantitative research methodology is utilised to determine the customer value of electric smart meters. Because operations performance objectives cannot be measured directly as well as the costs, a Structural Equation Model (SEM) is utilised to set the benefits and cost elements as latent variables indicated by various responses from a survey distributed to a total of 365 respondents. Results: The resulting analysis through SEM indicated that South African residential customers find value in electric smart meters. The value is driven mainly by the Speed, Cost and Dependability capabilities of electric smart meters. Customers are found to be neutral with regard to the Flexibility and Quality 2 capabilities of electric smart meters. The main cost element of smart meters affecting customer value is observed as the internet or data fees in South Africa, which is a requirement to fully benefit from the capabilities of smart meters. Lastly, it is observed that there is no difference in the customer value for the different customer groups based on gender and age. Managerial implications: This study provides insight relevant to municipalities, utilities and organisations operating, planning to introduce or deploy residential electric smart metering infrastructure in South Africa to consider the value that electric smart meters bring to customers. These organisations should ensure that the dominant electric smart metering functions (Speed, Cost and Dependability) are visibly implemented to achieve maximum customer satisfaction and impact. Furthermore, it is worth noting the negative impact caused by high internet or data costs on the value of electric smart meters to residential South African Customers.