The amount required to start prepaid electricity service varies by provider, but upfront costs typically range from $20 to $75. For month-to-month prepaid service, the initial payment—often called a connection balance—is not a deposit or separate fee; the full amount is applied directly to your account to cover your energy usage. This pay-as-you-go model allows you to bypass credit checks and deposits, which can cost $250–$350 for traditional plans, depending on your credit history and the provider.
It’s important to note that electricity companies include a Transmission and Distribution Utility (TDU) service fee. This mandatory charge covers the cost of delivering electricity from power plants to your home (Texas Energy). Any additional account setup fees or incremental charges can typically be understood by reviewing the plan’s Electricity Facts Label (EFL), which the Public Utility Commission of Texas requires providers to give to consumers before signing up for service.
Overall, the startup costs for prepaid electricity are low, predictable, and transparent. Once your initial payment is processed, service is often activated the same day—sometimes within a few hours—making it a fast, flexible, and budget-friendly way to get power.