*Professor, Department of Management, Narayana Engineering College, Nellore – 524001, Andhra Pradesh, India.
Online published on 29 September, 2017.
The Erstwhile Andhra Pradesh State Electricity Board (APSEB) was the principal supplier of Electricity in the state. The board was established with an installed capacity of 213MW, 2 lakh consumers, The power sector In Andhra Pradesh enjoyed a reasonable comfortable financial position till 1991–92 by meeting all its operating expenditure out of its revenue. However, for the first time in 1992–93 and also in the subsequent year it has faced an operating deficit. The decline in the financial position was due to various reasons like deficiencies in billing and collections. Being a service organization, its development and progress depends on the revenue it has collected from the consumers. In order to speed up the revenue collection, various billing methods were introduced. This paper highlights the pros and cons of the spot billing system and also consumers’ opinion on the spot billing and spot payment. In spite of mixed responses regarding the spot billing and the spot payment system, it is concluded that, it is a good signal to consider both spot billing and spot payment, to increase revenue recovery as well as to save the valuable time of the consumer in paying the bills.
Operating deficit, Operating expenditure, Service organization, Spot billing, Spot payment, Valuable time
