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Prepaid Electricity

Get more control over your energy bill

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What is prepaid electricity?

Prepaid electricity, sometimes known as pay-as-you-go electricity, is a type of electric plan where customers pay for electricity they need before they actually use it.

Prepaid electric plans allow customers to have more control over what they pay, since they only pay for as much electricity as they need. Such plans are similar to pay-as-you-go cellphone plans.

Other benefits of prepaid electricity include:

If you think prepaid energy is the right choice for you, enter your ZIP code above to shop prepaid plans from top retail electric providers. Or, keep reading to learn more about the advantages and disadvantages of a prepaid electric plan.

Advantages and disadvantages of prepaid electricity plans

Prepaid plans are a flexible choice in the energy marketplace, but they aren’t for everybody. Here are some more pros and cons of prepaid energy plans.

Who should get prepaid electricity?

Prepaid electricity often is a good option for customers with less-than-perfect credit. But prepaid plans can be advantageous for other reasons too. Here are a few scenarios where a prepaid electricity plan might be the best choice:

  • Families with limited income
  • Individuals trying to sign up for power without upfront costs
  • Families or individuals who will be moving soon, or who move frequently

Who should not get prepaid electricity?

As you can see, prepaid plans are great if you don’t want to pay a deposit or have bad credit. They allow you to know in advance what you owe and manage usage as the month progresses. But there are also some downsides.

Disadvantages of prepaid energy:

  • You have to pay in advance. If you’re already worried about paying a deposit, this might not be any better.
  • You also must keep a minimum account balance. If you frequently find yourself needing more electricity than you paid for, this could become a problem.
  • While prepaid electricity plans don’t include early termination fees to keep you from switching before a contract ends, rates often are higher than traditional plans.

Despite these drawbacks, prepaid plans are beneficial to many because they don’t tie up funds in a huge deposit. Customers for whom money is tight, such as the Texas residents who recently have been homeless or between jobs, can manage their use to keep costs down.

Prepaid electricity providers

Many retail electric providers (REPs) in Texas offer pay-as-you-go electricity alongside their standard contracts, including Payless Power and First Choice Power. To see prepaid options in your area, enter your ZIP code above. You can even narrow down your results by type of plan using the filter tool. We’ll show you today’s rates and help you find the best prepaid plan.

Prepaid electricity reviews

Reviewing providers based solely on prepaid plans is difficult, as many REPs offer both prepaid and postpaid options. However, we’ve evaluated some of the top REPs in Texas so you can be sure you’re getting reliable service, regardless of which option you choose.

You can also try consulting the Better Business Bureau, which has recent ratings and reviews on a majority of top electricity providers.

More information about pay-as-you-go electricity

If you’re not sure whether prepaid electricity is the correct choice for you, consult our energy buying guide to compare it with other plan options.

Or, call the number on this page to speak with one of our energy experts who can answer all your questions.

Updated: 7/9/2021