Last Updated on December 13, 2023 by Mary Pressler
Prepaid Electricity: Surprisingly Cheaper Than a Monthly Bill
While most Texas electricity companies want to sell you a “cheap electricity plan”, don’t count out prepaid electricity. As is turns out, prepaid electricity can cost less than a monthly bill, especially if you have a high consumption home.
For homes using 500-1,000 kWh per month, prepaid electricity plans tend to have slightly higher costs than traditional postpaid plans. However, when you consider larger homes using around 2,000-3,000 kWh/month, prepaid electricity is actually cheaper than many traditional 12-month plans.
In this case, we’ve analyzed the Payless Power 12 Month Prepaid Plan which is available with no credit check or deposit.
The following tables compare this popular plan with several postpaid plans from competing electricity providers. As you can see, high-consumption homes throughout Texas can gain the benefits of prepaid electricity without having to pay a higher kWh price.
Prepaid Electricity vs Postpaid Comparison Chart (Dallas/Ft Worth)
| Texas Electricity Company | Electricity Plans | Delivery Charges (REP + Oncor) |
Fixed Energy Rate per kWh | Total kWh Price with Oncor Fees |
| Payless Power | 12 Month Prepaid
“Best Deal” |
$4.23/month charged by Oncor
$1.60/day charged by Payless Power |
8.10 ¢ / kWh energy charge
13.1339 ¢ / kWh with TDU fees |
15.7 ¢ / kWh when consuming 2000 kWh
15.2 ¢ / kWh when consuming 2500 kWh 14.9 ¢ / kWh when consuming 3000 kWh |
| Reliant | Secure Advantage 12 | $4.23/month charged by Oncor
$9.95/month charged by Reliant, only if you use less than 800 kWh |
10.7045 ¢ / kWh energy charge
15.7384 ¢ / kWh with TDU fees |
15.9 ¢ / kWh when consuming 2000 kWh
15.9 ¢ / kWh when consuming 2500 kWh 15.9 ¢ / kWh when consuming 3000 kWh |
| TXU Energy | Simple Rate 12 | $4.23/month charged by Oncor
$9.95/month charged by TXU Energy |
12.20 ¢ / kWh energy charge
17.2339 ¢ / kWh with TDU fees |
17.9 ¢ / kWh when consuming 2000 kWh
17.8 ¢ / kWh when consuming 2500 kWh 17.7 ¢ / kWh when consuming 3000 kWh |
| Just Energy | Simple Choice 12 | $4.23/month charged by Oncor
$4.95/month charged by Just Energy |
10.90 ¢ / kWh energy charge
15.9339 ¢ / kWh with TDU fees |
16.5 ¢ / kWh when consuming 2000 kWh
16.4 ¢ / kWh when consuming 2500 kWh 16.3 ¢ / kWh when consuming 3000 kWh |
As you can see, regardless of your electricity plan, Oncor charges 5.0339 cents/kWh for power delivery and a fixed fee of $4.23 per month. When we compare these four energy brands, we can determine that Payless Power prepaid electricity costs less than a monthly plan with Reliant, TXU Energy and Just Energy.
Prepaid electricity rates in the Houston area are also cheaper, which is shown in this table:
Prepaid Electricity vs Postpaid Comparison Chart (Houston)
| Prepaid Electricity Company | Electricity Plans | Delivery Charges (REP + Centerpoint) |
Fixed Energy Rate per kWh | Total kWh Price with Oncor Fees |
| Payless Power | 12 Month Prepaid
“Best Deal” |
$4.39/month charged by CenterPoint
$1.60/day charged by Payless Power |
8.20 ¢ / kWh energy charge
13.6694 ¢ / kWh with TDU fees |
16.3 ¢ / kWh when consuming 2000 kWh
15.8 ¢ / kWh when consuming 2500 kWh 15.4 ¢ / kWh when consuming 3000 kWh |
| Reliant | Secure Advantage 12 | $4.39/month charged by CenterPoint
$9.95/month charged by Reliant, only if you use less than 800 kWh |
11.261 ¢ / kWh energy charge
16.7304 ¢ / kWh with TDU fees |
16.9 ¢ / kWh when consuming 2000 kWh
16.9 ¢ / kWh when consuming 2500 kWh 16.9 ¢ / kWh when consuming 3000 kWh |
| TXU Energy | Simple Rate 12 | $4.39/month charged by CenterPoint
$9.95/month charged by TXU Energy |
12.70 ¢ / kWh energy charge
18.1694 ¢ / kWh with TDU fees |
18.9 ¢ / kWh when consuming 2000 kWh
18.7 ¢ / kWh when consuming 2500 kWh 18.6 ¢ / kWh when consuming 3000 kWh |
| Just Energy | Simple Choice 12 | $4.39/month charged by CenterPoint
$4.95/month charged by Just Energy |
11.1 ¢ / kWh energy charge
16.5694 ¢ / kWh with TDU fees |
17.1 ¢ / kWh when consuming 2000 kWh
17.0 ¢ / kWh when consuming 2500 kWh 16.9 ¢ / kWh when consuming 3000 kWh |
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