About prepaid electricity

Prepaid electricity plans allow customers to pay for their electricity usage upfront. Unlike traditional billing, which charges you for energy after the fact, these pay-as-you-go plans deduct your usage from your prepaid balance and notify you when you need to add more funds.

Although not all energy providers offer them, prepaid energy plans are available throughout most of Texas, thanks to energy deregulation. These plans are popular among customers who want to avoid credit checks or upfront security deposits. They also make it easy for anyone to get electricity service.

To explore prepaid electricity in Texas, you can enter your ZIP code on the free Choose Texas Power marketplace and filter your results for prepaid electricity plans. Read on to learn more about how these plans work.

Is prepaid electricity for me?

Before signing up for a pay-as-you-go electricity plan, there are a few factors to consider. First, not everyone is eligible. Texas residents who have chronic conditions or who are in critical care are not eligible for prepaid energy plans for safety reasons in case their service disconnects. Otherwise, anyone can access prepaid electricity in Texas.

Pros of prepaid electricity

• No deposits: Some electric companies require customers to pay a deposit if they do not meet a certain credit threshold. Pay-as-you-go electricity plans are a surefire no-deposit electricity option, regardless of your credit.
• No credit checks: This goes hand-in-hand with the previous point. For customers who have lower credit scores or just don’t want to undergo a credit check, prepaid plans may be the best — or only — option.
• No contracts: Because you pay in advance, you can cancel a prepaid plan anytime without incurring early termination fees.
• Bill control: One of the best features of pay-as-you-go electricity is that it gives customers the ultimate control over their bills. While regular energy plans bill based on your energy consumption, prepaid plans allow residents to set usage and price caps on themselves.

Cons of prepaid electricity

• Upfront costs: While prepaid plans do not require deposits, they do, by nature, require you to pay upfront for the electricity you will use that month.
• Higher rates: Pay-as-you-go electricity can be an immediate option for customers who can’t handle a deposit payment, but that often comes with a higher overall electricity rate. This makes them a bit less affordable in the long run.
• Minimum balance: Prepaid electricity plans require customers to maintain a minimum balance. Make sure to read your plan’s Electricity Facts Label (EFL) to verify that you’re comfortable with the minimum balance.
• Automatic shut-offs: If you use up all the electricity you paid for in a given month, your service will shut off. The lights turn back on within a few hours once you add money to your account.

Prepaid electric companies

Not all retail electricity providers (REPs) in Texas offer prepaid electricity plans. One popular prepaid electric company you will find on the Choose Texas Power marketplace is Payless Power, which specializes in pay-as-you-go and no–deposit options.

Other Texas electricity providers offer prepaid options amid their other plan types. Enter your ZIP code now to start comparing prepaid electricity plans in your area.