CHAPTER 1:

Introduction

1.1 Background of the Problem

Electricity is a very important utility in all aspects of our modern existence domestic, for a diverse range of needs, businesses and industries to make electrical and electronic devices operational. In 1965, Ghana began generating hydro electric power of 588 Mega Watts(MW) from the Akosombo Hydro Electric Generating Station in the Eastern Region and has since seen rapid expansion in the capacity of the plant, there has also been the creation of new plants with divergent energy sources augmenting the demand for extra power to meet current and growing load. Currently, Ghana generates about 1,072MW of hydro electric power from hydro electric plants and about 330MW of thermal power from the Aboadze Thermal plant. (Site source from VRA) Like most utilities, electrical power ought to be paid for when consumed. These fees go to defray investment and operational costs incurred in running electrical plants that generate electricity. Power generated from the Akosombo dam serves most partsq of Ghana and neighboring countries. Ghana gains foreign exchange from direct sale of electric power to her neighbors and expects to receive fair revenue when sold for domestic consumption. The Electricity Company of Ghana (ECG) is responsible for providing state generated electric power for domestic use and thus interfaces with the public in matters pertaining to electricity. Over the years, ECG has lost significant amounts of revenue from the domestic market due to fraudulent commissioning and irregular underhand dealings perpetrated by the public and staff of ECG. This canker has deprived the ECG of 40% of its revenue due the nation. (Alex Offei Agyeman, Administrative Manager of Revenue Protection Information Bureau (RPIB) http://www.ghanabusinessnews.com/2011/10/08/revenue-protection-information-bureau-allegesunderhand-dealings-in-ecg/. Revenue Protection Information Bureau alleges underhand dealings in ECG Retrieved June 19 2012) Since 2005 ECG has introduced prepaid metering into the country to attempt to curb the fraudulent underhand dealings and gross inefficiencies plaguing the company. Since the introduction of this metering system electricity consumption has been prepaid; attempting to battle issues of waste, theft and fraudulent billing.

1.2 The Problem

Coming as a surprise, this fraudulent canker seems to have been deeply rooted within the society and finds the prepaid metering system, with its own pitfalls, hacked and exploited sending the nation back to where we started losing 40% of nation revenue in electricity tariffs. The prepaid metering system looked like one that came to settle the score between the public and the ECG as to the right amount of electrical consumption per household. The problems of wrong meter readings had been eliminated and the practice of power conservation enforced by the public. Although the installation of prepaid meters came with problems of availability, its adoption was met with very minimal public resistance as it encouraged consumer control.

The prepaid metering system in Ghana has seen a variation in meter deployments that require the use of the following access interfaces: 1. 2. 3. 4. Infrared remote controls Chip and pin smart cards Magnetic strip cards Magnetic touch cards

These variations all follow a fundamental procedure of purchasing electrical power for domestic consumption - the customer synchronizes an access interface (remote control device, smart cards, magnetic strip cards and touch cards) with the meter before proceeding to a vending station to purchase power. The vending station connects to the access interface with a computer device and adds the new purchased value of electrical power to the existing value on the access interface resulting in a new balance. It is a requirement that the access interface physically resynchronizes with the meter in order to update the credit value on the meter with the new balance. Beside the laborious exercise in paying for electrical power, there is the problem of vending station availability, reliable computing systems for vending services and the non-existence of an external authentication platform for ECG to verify the information entered into its metering system as any security vulnerability is exploitable for extended periods of time, thereby losing revenue.

1.3 Statement of the Problem

Despite the good intentions characterized by the introduction of the prepaid metering system in Ghana, it is apparent that hacks, technical inefficiencies, procedural complexities and mistrust have undermined the system, which has therefore caused a nationwide failure in revenue generation.

1.4 Statement of Purpose

In an effort to identify and comprehend the reasons for which the current prepaid method fails to solve the problems plaguing the system, this research meticulously calls for careful scrutiny into the technical and procedural operations of the prepaid metering system as it is currently deployed. A careful study will be invested into its variance in order to identify areas of complexities, inefficiencies, abuse, and recommend communication and authentication systems to improve its overall security, efficiency and performance. This will provide Ghana with a sound, secured system infrastructure with minimal technical complexity and high procedural efficiency.

1.5 Rationale of Study

This study brings the untold stories of the problems of the prepaid metering system to light and proposes a solution that will lay these problems to rest. Since the main objectives of this project are tailored towards the specified deliverables, it will not see a physical implementation; but will serve as a platform and basis for future research into similar fields which could see a physical realization. Since this study calls for a careful inquisition into the technical operations and possible overhaul of the current system, a

proposition to address the inefficiencies of the current system are enumerated and blotted out. While researching into a suitable authentication platform, an accompanying communication strategy is also identified and both designed to provide a wide range of inherent benefits to all stakeholders. These benefits include: 1. 2. A less cumbersome procedure to purchase electrical power. A secured platform that minimizes or possibly eliminates hacks and fraud.

3. A network of interconnected meters, real-time monitoring and better support. 4. 5. Easy reporting, management and accountability. The elimination of waste.

1.6 Goal of Study

The goal of this study is to research into the internal processes and failures of the current prepaid metering system and propose the design of a suitable communications system and authentication strategy that will provide the platform a procedural method to curb the waste and fraudulent menace plaguing Ghanas prepaid system. These proposed system changes and additions will thus revamp electricity prepaid system in Ghana.

1.7 Objectives of Study

It is obvious that the scope of this study is quite gargantuan thus the focus will be the achievement of the following deliverables and also to satisfy the necessity of a research in partial fulfillment of the requirements for the award of a Master of Science degree in Telecommunications Engineering 1. Study the logical design of the current prepaid system

2. Propose a suitable communication and authentication strategy that will best suite a design for the proposed system. 3. Introduce the logical design of the proposed prepaid system.

1.8 The Research Hypothesis

A hypothesis is a hunch, assumption, suspicion, assertion or an idea about a phenomenon, relationship or situation, the reality or truth of which you do not know.( Kumar, Ranjit, 2005). There are problems plaguing the current prepaid system that prevents the nation from fully recouping its revenue on electrical tariffs. A careful enquiry will confirm or falsify this null hypothesis and will propose an effective solution should the null hypothesis evaluation prove to be true.

1.9 Research Methodology

A lot of the study came from observation and informal inquisition from the general public about the challenges/ problems encountered with the prepaid system and their overall frustration with it. An interview was also conducted with the head of the Prepaid Systems at the ECG office to carefully understand the technical operations of the prepaid system and known technical challenges. A sample of the public was polled to find out about the perceived success of the proposed solution. The response were then analyzed and conclusions drawn.

1.10 Assumptions and Limitations

Several assumptions and limitations were made in this research due to timing constraints and resource availability and thus does not accurately express the view point of all. The following are a list of assumptions made with this study:

1.10.1 Assumptions
1. 2. 3. 4. Telecommunications infrastructure in Ghana is 100% operational Telecommunications service is accessible everywhere in Ghana The majority of Ghanaians are literate with regards to operating a mobile phone. Internet and data services are highly functional across the country.

1.10.2 Limitations
1. The sample size for the research was small and limited to a youthful population that where comfortable with technology. 2. Respondents to survey questionnaires selected answers from close ended questions that closely matched their real responses, thereby not accurately reflective of view points 3. Timing was a limitation as it was geared towards the attainment of a Master of Science degree and needed to be put together within a requisite time frame 4. Researchers minimal scholarly apt in conducting and evaluating researches.

1.11 Organization of Thesis

The study runs through five chapters, the first of which, expounds the problems of the prepaid metering system in Ghana. This chapter enumerates the goal of the thesis, its objectives, limitations and assumptions and formulates a null hypothesis that is evaluated in the ensuing chapters and answered in the last chapter.

The second chapter reviews available literature on the subject of prepaid electricity metering system in the world its variance, implementation, challenge and success. The third chapter discusses the methodology and approach in primary and secondary data collection and pens a deep understanding of the current operations of the prepaid metering system deployed in Ghana. Responses to research surveys are analyzed in the forth chapter and various communications platforms and authentication strategies are evaluated in attempt to put together a prepaid metering solution that seems to address the research problem. The fifth chapter concludes with an evaluation of the null hypothesis and a recommendation of a proposed prepaid metering system since the null hypothesis results in the affirmative.

1.12 Conclusion
As already outlined, this chapter frames the area research interest and outlines the problems to be investigated. The next chapter reviews literature available on this study.