How Prepaid Energy Metering Can Save You Money
Technically speaking, a prepaid electricity meter has no effect on the energy efficiency of your home appliances. The amount of energy consumed stays the same if no habits are changed, and there is only a difference in the payment method.
However, a prepaid electricity plan has two features that tend to change consumption habits that lead to less spending:
- You pay for energy upfront, and not at the end of a billing period. Using a prepaid electricity plan is like spending cash on hand, while using a normal postpaid plan is like accumulating debt in a credit card.
- You get daily reminders of how much has been deducted from your account and the corresponding electricity consumption. If people notice that consumption is higher than normal on a given day, they will react immediately instead of waiting for an expensive power bill.
When Texan’s switch to a prepaid electricity plan for the first time, a common concern is running into a negative account and having the power disconnected. However, this is unlikely to happen when there are daily notifications about your kWh consumption and account balance.
Also noteworthy is that choosing prepaid electric gives you flexibility to switch power providers. Since you are paying in advance for the energy used, providers do not impose a early termination fee.