While some postpaid plans may offer lower per-kilowatt-hour (kWh) rates, prepaid electricity gives consumers immediate control and transparency over their consumption.
- Visibility and Control
One of the biggest advantages of prepaid electricity is the visibility it provides. Consumers pay ahead and can see exactly how much electricity they’ve used and how much balance remains. This real-time feedback often encourages mindful habits—like turning off lights when not needed or reducing peak-time usage—which can lead to lower overall costs. - Accessibility for Customers with Limited Credit
Prepaid electricity is ideal for customers with limited or poor credit, or for those who cannot afford a large deposit. With no credit checks or upfront security requirements, prepaid plans provide immediate access to electricity. Most plans are month-to-month or feature short-term contracts, giving flexibility for households that prefer not to be locked into a long-term commitment with a utility.
In Texas, the average postpaid electricity plans in 2025 range from 14.68¢ to 16.56¢ per kWh, depending on usage and utility region. Prepaid plans may run slightly higher—typically around 18–20¢ per kWh—but they also eliminate costly deposits (often up to $350) and late fees. Because consumers pay upfront and can monitor usage in real-time, many find prepaid electricity helps them avoid surprises and manage costs more effectively.
The Bottom Line: Prepaid electricity works best for consumers who actively monitor their usage and want direct control over their spending. It can be cheaper in practice and is particularly helpful for customers with bad credit or who cannot afford a deposit.