Texas provides its residents with a deregulated energy market, which provides monetary and energy-saving options not available in most places around the country. For some Texans, these options are limiting, leaving them unable to purchase electricity through any traditional means. Traditional postpaid plans require good credit, a deposit, and flexibility for the price to change from month-to-month, which can be challenging for many families.
As an added option, there is also a prepaid electricity plan. You may ask yourself is prepared cheaper than postpaid, and in some way, you may be correct. Prepaid electricity plans give a different view of paying for electricity, which could potentially mean money saved.
Read on to learn more about prepaid vs. postpaid electricity plans as a way to help you decide which one is best for you.
Different factors might sway you to decide whether to find a prepaid or postpaid electricity plan. For instance, if you find yourself needing a low energy bill on a one-year-long lease, a postpaid plan may be better for you. However, if you find yourself unable or unwilling to pay the deposit, you may switch it up with a prepaid plan. Here are some of the differences between the two to help you with a decision.
Prepaid electricity plans characterize themselves as requiring a fixed cost payment at the beginning of each month. The customer sets the amount in exchange for a certain amount of electricity that the amount will cover. Though it’s an easy way to avoid any late fees and keep the spending to your budget, once you’ve used all of the electricity allotted, it will get disconnected. To avoid such a problem, you can set up an auto-pay feature through your credit card or bank account.
The nature of this type of plan makes it more flexible and accessible to the broader population in a deregulated market. As mentioned below, various incentives make prepaid plans even more welcoming, especially to those families that find themselves in a financial bind.
Postpaid plans are considered the traditional energy service as you sign a contract with an energy company for a certain amount of time and rate. With this plan, you pay for the electricity once used and not at the beginning of the month, making it change from month to month. A deregulated market promotes competition, which means that a variety of low rates are available.
A postpaid plan may be a good option for a family with a little more flexibility in their monthly budget and the ability to sign a longer-term contract. So long as an individual can show good credit and submit a deposit, there is a potential for saving through the lower rates the contract will lock you into.
There are different advantages to using a prepaid electricity plan as opposed to the traditional postpaid plan.
Prepaid and postpaid energy plans have their own benefits and downfalls. Families living in a deregulated market will most likely have both presented as an option and should be reviewed carefully based on individual needs.
A prepaid plan offers quite a bit of flexibility since it does not tie you down to a long-term contract, all the while allowing you to control the amount you spend. Of course, as needs change, so too will the amount you spend. Postpaid plans require a deposit and good credit in order to get you started, which may present a unique hurdle for cash-strapped families to jump through.
Though it’s possible to save money, whether you’re on a postpaid or prepaid plan, there is a certain extra level of incentive with the prepaid plan. Your budget is yours to control, and the prepaid plan will help maintain your level of spending, while still providing your family with the necessary utilities for a healthy and happy home.
Disclaimer: © November 2020 PayGO Distributors, LLC. This is an advertisement for prepaid electric service from PayGO Distributors, LLC., an independent energy sales organization. Energy services are provided by Young Energy, LLC DBA Payless Power REP#10110 and Brooklet Energy Distribution, LLC DBAs Acacia Energy, Snap Energy Latino, and Now Power REP#10137. There is a minimum required payment to establish a connection. Call for more information on minimum required payments, balances, and specific terms of service and promotional details. Utility fees may also apply and may increase the total amount that you pay. Offers subject to termination or change without notice. Se habla Español.
* Rates quoted are at 2,000 kWh per the Electricity Facts Label for Oncor. Please check EFL for your effective rate.
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