Advantages of prepaid meters:

1. Prepaid meter lead to improved revenue collection;
2. There are less personnel and overhead cost required and disconnection costs.
3. It uses the latest use of technology available in the market;
4. The controlled energy use goes hand in hand with budget management.;
5. Prepaid technology can allow the centralization of different activities e.g. debt collection and bookkeeping simultaneously.
6. It can be used to recover debts for example in Eastern Cape a customer on prepaid credit meter is allowed to pay about 15% towards the redemption of old debt.
7. It also eliminates delays in billing and no account posting or additional billing system is required.
8. It can maximize the utilization of resources and personnel per unit time.
9. Prepaid technology leads to better cash flow and healthier financial forecasts;
10. The is a consistent and stability in revenue flow as the credit risk is minimized.;
11. There are limited or fewer opportunities for fraud, theft and bypassing the meters.
12. It strengthens or improved relations between cooperative users.
13. The use of prepaid technology disallow the accumulation of debt that increases the probability of default (risk);
14. It eliminate the of traditional invoices as well as uncertainties regarding meter reading;
15. Customers are able to make purchases as many times as desires on a 24-hour basis;
16. There are no field or site visits except under inspection.;
17. It saves time and costs associated with meter reading and entry of data into billing systems.
18. It leads to the ability to control electricity consumption by setting the amount and time of purchase including when and how;
19. With improvement in technology, can result in elimination of service centres;
20. Stable cash flow and forecasts can result in rapid expansion of the business
21. It eliminates personal confrontations as consumers may develop poor attitudes towards meter readers.

Disadvantages

1. Many users consider it as a big hassle to buy electricity frequently, which consume their time.
2. Consumer perceives it as an instrument to control the communities. This is prevalent in highly politicised areas
3. Prepayment technology has reduced but not necessarily solved pilferage, revenue losses through pilferage still continue (Estimated to R51 million-Businessday);
4. Prepaid metering cannot handle large size currents;
5. It might require advanced and expensive computer software;
6. Depend on the latest trends in technology;
7. Does not contribute to economic growth;
8. Skill and knowledge intensive
9. Need for backup systems/ information storage centres.

In addition utilities can benefit:
1. Utilities benefit because payment is received in advance;
2. Obviates need for regular meter reading and associated irregularities. Expenditure on billing mechanism is saved;
3. Power can be rationed under critical conditions
4. The consumer has a direct control over his budget. There is a direct link between the money he spends and the value he gets.

The main advantages of Prepaid to conventional metering, according to users, included:

1. The ability to control electric power consumption, by setting the amount and time of purchase and deciding on when and how to consume the power.
2. The ability to make power purchases as many times as desired, on a 24 hour-a-day basis.
3. The elimination of the traditional invoice, as well as the uncertainties regarding meter reading and actual consumption.

Main advantages for the co-operative included:

1. The elimination of consumer bad debt and also of operating costs associated with power disconnection and reconnection.
2. Ease of administration
3. Improved relations between the co-operative and users
4. Cost savings, which facilitated the application of optimised flat tariffs.
5. Better cash flow and healthier financial forecast.

Disadvantages
1. Based on interviews of senior mangers, it is now being felt that the cost of maintenance of prepayment meters is not going down; rather it has escalated due to some unanticipated problems that have cropped up now.
2. The prepayment system cannot handle large size currents at this stage; therefore, it is not always the best solution.
3. The prepayment technology has reduced, but not necessarily solved the problem of pilferage; revenue losses from pilferage are still high and estimated to the tune of R 51 million per annum (Business Day, 23 March 2001).

Disadvantages experienced by consumers of electricity through the pre-paid system
1. Consumers perceived the prepayment system as an instrument to control the communities. However, this view was prevalent only in highly politicized communities such as SOWETO in Johannesburg.
2. Many users considered it a big hassle to buy electricity frequently, which consumed their time.