The system represents a prepaid electricity service offered by the public utility provider on the island. This arrangement allows customers to purchase electricity credits in advance and then consume power until the purchased credit is exhausted. This contrasts with traditional billing where consumption is measured and billed retroactively.
This approach offers numerous advantages, including improved budgeting for consumers as they control their electricity expenditure. Furthermore, the utility benefits from guaranteed payment upfront, reducing instances of non-payment and improving cash flow. Historically, such systems have been deployed to reduce operational costs associated with meter reading and debt collection, thereby increasing efficiency.
