Paying the fee in advance of consumption is a good way to overcome problems associated with charges. This has been widely accepted as it improves efficiency and management. It also contributes to resource conservation.
By using this prepayment mode, payment in advance for electricity, water, gas and heat is a reality. When the residual balance is zero, the supply of electricity, water, gas or heat will be cut off.
In implementing the prepayment manner gives users the ability to choose whether or not to buy and to decide how much to buy. If it is left only to the market then problems involving market cornering and resource wasting could occur. On the other hand, if the quantities of purchase were limited, users could be inconvenienced.
In order to minimize the problems described above, we provide a good prepayment scheme as follows:
Water (electricity, gas and heat) supply companies issue "Recharge cards" in their local area so that they are as easy to obtain as mobile telephone recharge cards. The user dials the number of the water (electricity, gas or heat) supply company and follows the voice prompts to obtain a 10 digit recharge code. With these10 digits and using the remote controller, users can recharge their prepaid meter.



Recharge card issuing:

    Water (electricity, gas and heat) supply companies issue the recharge cards, then license businesses such as supermarkets, shops or industrial management companies to sell the product.

    Since the denomination of recharge card is RMB, not the quantity of electricity, water, gas or heat, the problem of hoarding is avoided without any influence of price adjustment. Also the quantities that users are allowed to purchase are limited at any given time, because the quantity water, electricity, heat and gas that users may buy must be between the maximum and minimum limits.
Water (electricity, gas and heat) companies have the ability to decide who is responsible for payment of the handling fee, including the recharge card cost (within 20 fen RMB for each ) , issuing cost ( within 70 fen RMB) and the telecom cost (with 20 fen RMB).

Advantages:

1. There are limited people who posses bankcards therefore payment of water, electricity, gas and heat in cash is more convenient.
2. Recharge cards are issued in batches, so water, electricity, gas and heat companies can receive cash in advance over a short period, without delays caused by banks and other agencies.
3. Many places can be set up to sell the recharge cards, so it is very easy to make them widely available, just like mobile phone recharge cards.
 
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