Understanding Pay-As-You-Go Electricity Options

Days are long gone when consumers use electric, often thoughtlessly, and wait for a whopping utility bill at the end of the month. At least that’s the case in some parts of the United States and other countries where pay-as-you-go electricity is offered. Because this is a fairly new concept in most of North America, read on below to further understand pay-as-you go or prepaid electricity.

Pay as you go electricityIn a nutshell, pay-as-you-go electricity requires you to pay for your electricity in advance. This pricing model lets you choose how much and how often you prefer to pay before you use the electricity. Think of it as buying a gift card, subway pass or mobile credit.


Here’s how pay-as-you-go electric typically rolls:

Compare prepaid electricity providers in your area and sign up an account with your preferred company. Since you buy first the electricity before using any kWh, no need for a deposit or a credit check. Then you have to purchase an energy credit that you think will fit your electricity needs. Most companies provide different options for you to pay or recharge your electricity credit, such as via your mobile phone, online, payment centers, etc.


Prepay electric service is recommended for those who want to better manage their energy consumption. Pay-as-you-go electric companies will normally text or email you daily account updates and notifications, including available balance, average usage, estimated remaining days, etc. Most importantly, they will remind you when your account is running low so you can replenish soon and avoid disconnection.


By tracking your electricity usage regularly, you’ll quickly spot patterns or habits in your daily use. Any deviation from this pattern like having guests overnight (increase usage) or going on a trip (decrease usage) will be noticeable while you track your account. Also, you’ll be able to know exactly the amount of electricity and money you’re spending at all times. Of course by frequently monitoring your usage and modifying your electricity habits accordingly, you can more effectively keep energy expenses within your budget.

If it’s available where you live, prepaid electricity is definitely a viable alternative if you want to reduce your energy use and costs, enjoy virtually hassle-free application and installation, and benefit from easy payment/recharging options.