Access to energy

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.

* Indicator part of the BipBop programme

BipBop is the Schneider Electric’s access to energy programme. The Group has developed BipBop, a sustainable programme to bring safe, clean electricity to people who need it the most worldwide. BipBop programme aims at developing solutions dedicated to needs and wants of poor communities, providing financial support to SMEs and entrepreneurs in the field of energy access and training young disadvantaged people to electricity trades. Three indicators, that are part of the Planet & Society Barometer, monitor BipBop programme progress:

• Contribute to the electrification of one million households at the Base of the Pyramid (BoP),
• Train 10,000 young from the BoP in energy management trades
• Set up 500 new entrepreneurs from the Bop in the field of energy management.