Advantages and Disadvantages of Prepaid Electricity

People have grown accustomed to not having to worry about contracts with their phones. That has allowed a lot of freedom in the choice of services. People like this freedom. That is now being switched into the electric market. Consumers can pay for the plan they want, which means they can plan their budget easier. There are advantages and disadvantages, but people now have that choice in some places. Here are just a few of them for people to educate themselves on.


There are a lot of people living on tight budgets. Having a set price, like a prepay, will help people plan what they spend in a month. That allows better planning for what food will be bought. While someone may go over, there are certainly ways to plan for that. Some companies require a minimum amount kept on balance. That is how a prepaid electricity company in Texas does business. With various plans offered, there is even a chance that someone can plan for more people being in the house. On the disadvantages side, something can happen that causes more electricity to be used and the person has no money to cover that. That would mean that the budget for the household, plus electricity, are gone.


One consideration that many do not think about is conservation. While budget planning is very important, so is what resources are used. Power stations, even renewable sourced ones, require everything from fuel sources to the material to build them. People do not realize the amount of petroleum-based lubricants are used with the wind, or any other, turbines. Solar uses a lot of rare earth elements that require mining and refinement. Less electricity used means that there is less need to buy more. The disadvantages side of this is that this is how people on a limited budget lives anyway. It is not about the environment, but about making sure the kids have clean clothes or light to do homework by.


The weather can be a great help or a great burden. Extreme heat or cold can cause electric usage to go way up. This is a disadvantage. The weather can cause there to be extreme bills without prepaid plans. With someone on these plans, they have to plan for extremes. These can be a disadvantage. The advantage comes when the wind is blowing lightly and the temperature has people opening windows. This allows for less electric use and the stretching of someone’s plan. Good planning will help at every stage, no matter the temperature. No one can plan long term for more extreme situations, but the normal situations are easy to.

Helping others

People need help all the time. When folks go to college, parents help all the time. A prepaid plan allows parents to help, but setting limits for their kids. The same can be done for someone who is helping someone get back on the straight and narrow. The person who is helping has the advantage of knowing the bill will not be run up beyond what they can pay. The person getting help is a disadvantage of not being able to use massive amounts of electricity by having parties or something similar.

There are many advantages and disadvantages to using a prepaid electric plan. People just need to look at the possibilities and plan for any and all uses. People have grown fond of phone plans like this, so this could become the wave of the future for power companies.