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What is pay as you go electricity?

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Electricity is one of those amenities that you cannot do without. Almost everything nowadays depends on electricity. The electricity demand has grown so immensely over the past couple of years that Governments are now exploring and adopting new sources of energy. The high demand has, in turn, led to an increase in electricity prices. It is this upsurge in electricity rates that has driven electricity suppliers to come up with new ways to make electricity affordable to everyone.

Among the methods that electricity suppliers have adopted to control the increasing electricity cost are power pay, pay as you go, orprepaid’ plans. These are alternatives to the traditional method of electricity payment where you are required to pay for your electricity bills at the end of the month. There are also other strategies that Governments through energy regulatory agencies have adopted to make electricity affordable. One such strategy is the energy deregulation that has been adopted by some states, including some parts of Texas. Deregulation has led to introduction of new Retail Energy Providers (REPs), leading to increased competition and ultimately cost savings for businesses and households.

So, how does power pay work?

Power pay is a type of ‘pay as you go’ electricity plan where your daily electricity consumption is determined, and the necessary deduction made on your pre-funded electricity account, just like a prepaid phone. All you need to do is select the amount you want to pay and the frequency of payment to set how much should be deducted and when should it be deducted. You might also be required to set a balance threshold which can be as low as $10. When your balance goes below the threshold, you will be sent an alert notifying you that you are running low on credit and you need to reload. The alerts are sent via emails or text.

Apart from low credit alerts, you will also receive alerts on pending disconnections, new payments, days remaining and the ongoing balance. The beauty about power pay is that it doesn’t require you to pay a reconnection fee if by one reason or another, you let the money run out and your electricity is disconnected. Once you make payment, you are once again connected to the grid.

Power Pay enables you to be fully in-charge of your budget and gives you the freedom to choose how much to pay and when to pay, unlike the traditional electricity plans where you were required to pay monthly. It also allows you to pay in arrears in that, any payment you make, 20% goes towards payment of arrears while the remaining 80% pays for your future electricity usage. Other benefits include; no deposit, no credit check, control over your electricity usage, and lastly, the freedom to choose when and how much to pay.

What is a prepaid energy plan?

Prepaid energy plans as the name suggests is a type of energy payment arrangement where you pay for energy usage before you start using it. Just like pay power, a prepaid electricity plan, gives you the liberty to choose when to pay and how much to pay. Moreover, it also enables you to monitor your electricity making it possible for you to save. Paying beforehand makes it possible to avoid hidden or extra charges – you only pay for what you’re using.

Some of the things that make prepaid plans better than the traditional postpay electricity plan are:

  • No bills, no paperwork – you with prepaid electricity, once you have paid for your electricity usage, you don’t have to pay again. So there is no bills, invoices or any other paper for that matter
  • You can monitor your usage; as stated above you can track your energy consumption which is something you cannot do with postpay electricity plan
  • Freedom and flexibility; Pay as you go plans don’t have long term contracts, which mean you can stop paying whenever you want without incurring any penalties.


In Texas, numerous REPs offer prepaid electricity plans, all with differing rate structures. Payless Power, rated as one of the top REPs in the state, offers some of the most affordable, reliable prepaid electricity plans. Premier 12, our fixed-rate prepaid plan, guarantees customers a rate for the full 12-month term. For a flexible month-to-month option, our Easy Choice prepaid electricity plan offers a variable rate with no contract. Customers have time to look for a contracted plan while still paying an affordable month-to-month rate. Payless Power’s prepaid plans require no deposit, only a connection fee that goes directly toward the cost of electricity – saving customers money from day one.

Are Prepaid lights good?

Prepaid electricity is just the normal electricity, the only difference is the arrangement or plan of payment in that, with prepaid electricity or energy plans, you are required to pay before use, while with the traditional plans, you are supposed to pay at the end of certain specified time. Another difference could be the source of electricity or energy where some REPs provide 100% renewable or green energy e.g. solar, wind, geothermal etc while others derive their energy from non-renewable sources.

So, the answer to the question is yes. Prepaid lights are good and do not have any harmful effects to humans, at least none has been published.

Bottom Line

Pay as you go electricity plans are the convenient, affordable and reliable electricity plans, especially for customers who don’t want the hustle of credit check, contracts and paying deposit. With this plan, you can pay whatever amount you want, anytime you want. There is also the fixed pay as you go electricity service that not only offers budget-friendly rates, but it also protects you from energy market price fluctuation particularly the winter and summer price hikes. All you need to do is to deposit a certain minimum amount which in most cases is between $30 and $75. Most of these plans also don’t require cancellation or reconnection fees.

Therefore, if you are tired with the high electricity rates and want to avoid bill shock (BS), then you need to consider adopting a prepaid electricity plan. It is also ideal for those customers who are in a place or town for a short while before moving to some other place. This is because most pay as you go electricity plans do not entail long contracts – the longest is a 12 months fixed plan and the normal pay as you go plan is a variable month to month plan.

It is important to understand that pay as you go plans vary from company to company, so it is prudent that you read the whole terms of service agreement.


What our customers are saying

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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…

Julia L. in Webster

Long term customer

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.

Kalandra H. in McKinney