Understanding the Difference Between Prepaid Power and Traditional Billing

You’ve heard about prepaid power and traditional electricity companies, but what exactly is the difference? How and when you’re billed are just some of the areas where they differ. When deciding if prepaid power is best for you, it’s important to understand the difference between prepaid electricity and traditional billing. 

No Surprise Bills

The first— and maybe the most important—difference between prepaid and traditional power is the billing structure. Prepaid power allows you to pay for power in advance or as you need it. Instead of being on the edge of your seat waiting for the bill to come at the end of each month, you buy specific amounts of electricity as you go. Traditional power companies, on the other hand, bill you at the end of the month for the total amount of power you used. With traditional power, the bill is always a surprise, and most often an unpleasant one.

No Contracts, Credit Checks or Deposits

Other key differences include contract requirements, credit checks and deposits. With traditional electricity, you could be subject to all three. If you’re under contract, you can’t change your power company until the contract is over. This can make for an expensive process if life happens and you find yourself having to move before your contract is up.

With prepaid power, on the other hand, you don’t have to worry about contracts, credit checks or deposits, all of which can be a serious source of stress. The flexibility makes prepaid power a great option for those who have fluctuating salaries, low income or less than perfect credit.

Track Usage in Real Time

Prepaid power allows you to track your energy usage in real time. Prepaid power companies send daily reports breaking down how much electricity you used and your remaining balance. Traditional power companies don’t usually offer these reports, making it nearly impossible for you to identify how much power you’re using or find opportunities to save money.

The ability to monitor your account keeps you aware of how much electricity you’re using on a daily basis, how much you have left and areas you can save energy. With these daily reports, you’re never left in the dark. It’s easier for you to modify your habits and behaviors to help you save money on the power bill when you’re kept up to date about your account.

Now that you know the difference between prepaid power and traditional billing, it’s time to decide which is best for you. If you decide to go prepaid, Pronto Power is here to help you get started. Contact us today to learn more.