Should I Ditch My Postpaid Power Plan and Switch to Prepaid?

Traditionally, there’s only been one way to pay for electricity. You would receive a bill every month based on your electricity usage and pay it by the due date. Now, in Texas and other deregulated markets, there’s something called prepaid electricity. You pay for electricity in advance and monitor your usage to make sure you don’t go over budget. 

Now that it’s easier than ever to monitor energy use, prepaid electricity plans have become increasingly popular. Read on to learn about each type of plan and determine which one is right for you. 

Understanding Postpaid Power Plans

A postpaid power plan is one that’s paid for after the electricity has been used. If you like paying in monthly cycles or having your payment automatically collected, this type of plan may be easier to manage. 

However, it can often be more expensive. These types of plans often require deposits, contracts and surprise fees that can increase without you realizing it. There’s also a tendency to not think about your bill until you have an unexpectedly high one. 

Exploring Prepaid Electricity

With a prepaid electricity plan, you pay for power in advance. This type of plan involves more monitoring on your end, as you’ll have to keep track of your balance and monitor your electricity usage. 

However, most customers find that by doing this, they save a lot of money. Prepaid electricity also does not require deposits or credit checks, both of which can hinder low income customers. Since prepaid electricity customers constantly monitor their electricity, they tend to use less, which benefits their wallets and the environment. 

Factors to Consider When Making the Switch

If you live in a deregulated area, which type of electricity plan you use is ultimately up to you. Some customers prefer the ‘set it and forget it’ approach allowed by monthly payment plans. Others find that the cost savings of switching to prepaid power outweighs the extra legwork involved. It’s all about finding what works best for you and your lifestyle. 

Switching to prepaid power is easier than ever. With Pronto Power, you can sign up online, set up your smart meter, and have power within the hour. Call us today at 1-844-621-2852 or contact us online to get started.