As far as energy is concerned, Texas is a special place. The residents living in the energy-deregulated areas of Texas get the option to choose from many different competitive prepaid electricity plans. This is only possible because Texas became an energy deregulated state on January 1, 2002 and a consumers can opt to purchase their electricity service from a Retail Electricity Provider (REP) that sources their electricity. Prepaid energy services lets households purchase an specific amount of power in advance and then use it, just like how you can pre-pay for mobile services.
The pay as you go option is all about convenience. It is an excellent choice for those who do not wish to pay a large deposit or sign up for a long-term contract, pay late/disconnect/reconnect fines or receive a monthly electricity bill. It also works for those who have lost their identification, rented a place for a short period of time and need a power connection the same day. The customer also receives alerts regarding the daily usage, power rates, and account balance, thus giving them sufficient time to make payment before their power runs out. In case the customer’s account reaches zero, the power would be restored as soon as the funds are deposited into the account.
Prepaid energy services help a lot in conserving energy. Unlike the post-paid system where a customer is not aware of his consumption and only has visibility of his consumption at the end of the month when they receive their bill. In the prepaid energy system the customer has full visibility and is in total control of their consumption. A user becomes conscious of the amount of energy he or she is using and makes an effort to minimize usage in order to save themselves money. Prepaid services encourage those people to tighten their belt who otherwise on a postpaid plan would expend energy lavishly.
This system also favors both landlords and tenants alike. The tenants are spared from signing a long-term contract with the provider. This is especially advantageous if you are staying at a place only for a short period of time. The landlord can ensure that the tenants are paying for their energy charges regularly and they will not be left trapped with huge, unpaid bills at the end of the lease.
Some of the advantages you get while opting for prepaid electric system: