South Africa was at the forefront in development of the keypad-based prepayment electricity meter with the first product, called Cashpower, being launched by Spescom in 1990.
In 1994, together with Siemens, Spescom decided to launch a 50/50 joint venture company, Energy Measurements, to further develop the technology and to raise marketing to the global level.
As originally formed, Energy Measurements had its manufacturing located in a Siemens facility in Isando, the company being run by a Spescom director. As Spescom's focus changed with time it sold its 50% share in the company during 2001 to Siemens for some R35 million in cash. With Siemens now having 100% control, Energy Measurements also took over responsibility for the Landis+Gyr range of credit meters and systems, forming a division called Siemens Metering. In 2002, Siemens Metering was sold to a private equity company with Siemens AG retaining a 19% share holding. This deal resulted in Siemens Metering and Energy Measurements changing their name to Landis+Gyr, a name that is internationally synonymous with the metering industry.
The Cashpower technology is another excellent example of how local developments can find a niche in the international market. Cashpower systems are currently installed in more than 45 countries, ranging from Africa (Namibia, Zimbabwe, Benin, Tanzania, Zanzibar etc) to Australasia (Papua New Guinea, New Zealand etc) and including Europe and South America. Spescom's original patented encryption technology has been a major driver in this success.
The installed base for the Cashpower prepayment meter is over 1,5 million units and sales are growing. The company was also the first to develop the split-prepayment meter using power line carrier technology to communicate between the energy management unit and the customer interface unit. As a result of its large global market, product brochures and manuals are available in a number of languages besides English, these including Portuguese, French and Spanish.
Landis+Gyr also has a long list of achievements, these including receiving the President's Award for Export Achievement in 1998 while in 2003, the company was presented with a certificate as a finalist in the SPII Awards, this arising from the design work and sales success of the Cashpower ANSI Form 2S Meter. This product was exclusively developed for the export market and resulted in the winning of major contracts from utilities in both North and South America.
New products are continually under development and one of the later releases during 2002 was the new generation Sabre meter making more extensive use of the latest SMD technology and specifically based on the requirements of Eskom and other African countries. Other features include an enhanced sealing arrangement, and provision for tamper detection. The meter also provides unparalleled protection to endure the harsh African conditions and the enhanced sealing provides protection against the ingress of vermin.
While the company has a strong export focus, a large part of its business remains within South Africa. During August it was awarded 48% of the Eskom National Contract for the provision of prepayment meters, valued at more than R50 million. This contract will run to the middle of 2004. The company is also rolling out its Suprima software in both the City of Tshwane and for City Power in Johannesburg. Both of these cities are large users of the Cashpower Gemini meters (80 000 and 36 000 respectively).
An extensive range of locally-manufactured products is offered by Landis+Gyr, including integrated and split devices, the latter available in a form that makes use of a separate communications cable (suitable for new installations) or the company's unique power line carrier technology. Both single and three-phase devices are available. The Cashpower currency transfer system (CUTS) developed by the company is regarded as one of the most efficient revenue tools in countries where stepped tariff fees for electricity exist. The CUTS software system, which is based on the company's Suprima technology, can handle complex tariff structures and any of the world's currencies. In a unique advance, consumers are for the first time provided with the currency value of their remaining credit, not just kilowatt/hours.
This series looks at some of the leading companies in the electronics industry in South Africa today. To simplify presentation and avoid perceptions that they are being 'rated' in any way, this coverage is being presented in alphabetical order. Do not miss the next issue of Dataweek where we look at a company that in 1992 began development work on a niche tracking product that is now in widespread use.
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