A household is counted when it is equipped with a prepayment system (meters, vending stations, etc.). Prepayment systems, sold by Schneider Electric’s subsidiary Conlog, constitute a major solution to facilitate access to energy for people at the Base of the Pyramid (Bop) in providing electricity for a chosen amount by the consumer. This system:
- simplify connection to electrical networks,
- make it easier to extend electrical networks,
- allow populations to manage their consumption according to their needs and their income.
Unlike monthly credit systems, these systems are better adapted to the financial capacities of people with very low incomes that have mostly no bank account or mailing address. They can thus access to electricity by consuming only what they need and managing their budgets accurately and freely.
1.6 billion people worldwide have no access to electricity. Earth Summits have unanimously recognized that such access is essential to development. Almost 500 million people have no access to electricity in India and 550 million in Sub-Saharan Africa (source: IAE, 2007). The populations at the Base of the Pyramid live on a purchasing power parity of less than 3000$ per year.
Schneider Electric’s ambition is to gain access to electricity or provide a safer and more reliable access to electricity to people at the Base of the Pyramid in offering the appropriate solutions for these populations.