App to enable homes purchase cooking gas in small quantities

A technology firm is currently testing a new application that will see more households embrace the use of liquefied petroleum gas (LPG) to cook and light their homes.

PayGo Energy is currently piloting its gas cylinders’ smart meter and connected software with a plan to roll out the same early next year.

The company says it is looking to tap into the huge percentage of households who use charcoal and kerosene given the recent imposition of eight per cent levy on kerosene.

Fausto Marcigot, PayGo chief technical officer (CTO) says PayGo’s first meter prototypes have been completed.

“With the new system architecture at 90 per cent complete and operations in place, PayGo Energy is overseeing 300 customers on a pilot programme ahead of launch early next year,” Mr Marcigot said in a recent interview at IMPACT HUB Lagos.

PayGo Energy is a startup that enables a pay-as-you-go service to be delivered to end users.

Mr Marcigot says the company provides a smart meter which locks onto an LPG gas cylinder and enables users to purchase gas in small quantities thereby accommodating their purchasing power and their fuel purchasing habits.

“The smart meters are locked onto cooking gas cylinders and users can pay them using M-Pesa or any other mobile money platform. It operates like Kenya Power pre-paid meters. You can buy gas of any quantity depending on your purchasing power,” he said.

The system, Mr Marcigot said, measures the amount of gas that remains in the cylinder and predicts when it will run out.

“Our system is developed in such a way that it will alert you before the gas runs out. Somebody calls the gas user to give an alert before the gas runs out,” he said.

PayGo Energy started its operations in Mukuru and Kibera slums in 2016 and plans to expand to other parts of the country with the launch of the new prototype smart meters next year.

It injected more than $1.4 million in seed capital raised in April 2017 to expand its operations.

Mr Marcigot said the company has faced a number of challenges include myriad regulations in the energy sector.

He said after participating in the Google Launchpad Africa Accelerator programme held in Lagos, Nigeria, PayGo Energy is looking to raise funds for expansion of its distribution and warehousing of gas cylinders smart meter business but did not disclose the amount they are targetting.

Mr Marcigot said for gas firms, the PayGo Energy’s technology enables tighter controls and monitoring of customer and assets which in turn allows their operations to be more efficient and generate more revenue per cylinder.

“We are currently working with a number of big gas companies and small ones. But we cannot name them for now. We will let you know our partners when we launch,” said Mr Marcigot who was accompanied by Samuel Magondu and Albert Oketch.

PayGo Energy was among 10 startups located in Ghana, Kenya, Uganda, South Africa, Nigeria and Egypt that participated in Google Launchpad Africa Accelerator programme held in Lagos, Nigeria. The Google accelerator programme provides African startups with over $2 million (Sh200 million) in equity-free support, working space, travel and public relations backing and access to expert advisers from Google, Africa and around the world.