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Is Prepaid Electricity Cheaper than Postpaid Electricity?

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While having a deregulated energy market provides monetary and electricity savings for many Texas customers, there are still many customers who find getting a basic and critical need like electricity to be too expensive and out of reach. If a Texas resident has poor credit, can’t afford an  electricity deposit, or needs month-to-month flexibility, traditional postpaid electricity plans are virtually impossible to get. However, a prepaid electricity plan, where a customer determines and pays a fixed cost at the beginning of each month in exchange for a set amount of electricity–and no credit checks or deposits are required!–can be affordable and attainable for these customers. Read below to learn more about prepaid vs. postpaid electricity plans to see which type of electricity service is best for you.

Prepaid vs. Postpaid Electricity Plans

Making the choice between a prepaid vs. postpaid electricity plan has a lot to do with personal preference and how you want to pay your bill. For instance, if you do not want to prepay for electricity up front and are looking to get locked in at a low rate for the entire length of your 1-year rental lease, then a postpaid electricity plan is the best option for you. On the flip side, if you do not have good credit, cannot afford to pay for a deposit up front, and want flexibility on a month-to-month basis, then you should go with a prepaid electricity plan. Get a better understanding of the features and benefits of prepaid vs. postpaid electricity plans below.

Prepaid Electricity Plans

Prepaid electricity plans require customers to pay for a fixed cost at the beginning of each month, the amount of which is determined by the customer, in exchange for a set amount of electricity. As your prepaid electricity depletes throughout the month, you can replenish your balance by adding more money to your account on a schedule that works for you. This type of plan lets customers stick to their own custom budget of how much they’re going to spend on electricity each month rather than finding out how much they own based on their usage at the end of each month. While you avoid late fees with a prepaid plan, you can still get your service disconnected if you do not replenish your account balance in time. To avoid service disconnection, you can set up auto-pay with your credit card or bank account.

Prepaid energy plans promote energy conservation by providing real-time insight into how much energy you use on a daily basis and incentivizing customers to stay within their budgeted energy amount. If you move around a lot or are planning to move in the future, prepaid energy plans help you maintain flexibility and avoid long-term contracts as they only require you to pay for the energy you plan to use on a month-to-month basis. Keep in mind that signing up for a prepaid plan opens you up to frequent rate changes since you are working off of a month-to-month agreement. Lastly, people who have poor credit as a result of not paying previous electricity bills on time or for any other reason, or who cannot afford to pay a deposit upfront can still get the electricity they need immediately as prepaid electricity plans do not require a credit check or deposit.

Postpaid Electricity Plans

Traditional postpaid energy service allows customers to lock in with a fixed rate for a short or long term, giving customers the reassurance of knowing how much they’ll pay per kilowatt-hour for the duration of the contract. One of the biggest differences from prepaid energy plans is that you pay for electricity after you use it at the end of the month. Deregulated energy markets promote competition between retail energy providers, so a variety of low rates are always available for customers to choose from. Postpaid energy plans typically require a credit check and deposit up front, so make sure you have a good history of making your electric payment on time each month and can afford a deposit, which is typically 1-2x the cost of your monthly electric bill.


Once you receive your monthly bill, you usually have 15 days to make a payment before being charged a late fee and a disconnection notice. If you fail to submit a payment for your electric bill within 10 days of receiving a disconnection notice, your service could be disconnected. To avoid late payments and possible service disconnection, you can set up auto-pay with your credit card or bank account.

Lower Your Electric Bill a Prepaid or Postpaid Electricity Plan Today!

Whether you need the low barrier to entry that comes with a month-to-month, no credit and no deposit electricity plan, or are hoping to lock into a low electricity rate for an extended period of time, there are a variety of prepaid and postpaid electricity plans for all of the residents in Texas’ deregulated energy markets. Find an energy plan that helps you lower your monthly electricity bill today!

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Affordable and easy to make payments

I was worried about getting electricity for my home through a prepaid company. I was calling around to see different rates then going through all the hassle of credit checks while dropping points each…

Christine M. in Killeen

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I have been with this company for several years and have been very happy since. Even when I moved, they made my usually stressful situation very easy and carefree. I recommend them to everyone that I…

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I have enjoyed the service for 2 years now. In the beginning this service was planned to be temporary but with the service being so effective for me i decided to keep it for the long haul. I’m a happy customer.

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