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Understanding Pay-As-You-Go Electricity Options

October 10, 2010

Although people are quite familiar with prepaid options for certain products like in cellular phones and broadband connections, many are still apprehensive and have not yet understood the implications of pay-as-you-go options for electricity. In the current economic crisis, people are now more aware of their energy consumption and many have taken steps in reducing their electricity usage – and the use of pay-as-you-go or prepaid electricity options could people be aware even more.

With prepaid options for electricity, people can now monitor their actual electrical usage through the smart meter, with this service and are now more aware of the energy wastage that accumulate on a daily basis. Aside from that, people with bad credit histories are turning to this payment option as an economic means to supply electricity to their homes without the hassles associated with paying electricity services.

What is Pay-As-You-Go Electricity?

The deregulated market for Texas electricity has allowed different payment options and plans that cater to the needs and preference of the populace and prepaid electricity is one option now available on some areas in the state. With the power to choose retail electric providers and avail of prepaid payment options, the people have more flexibility in paying their electricity bills according to their capacities and lifestyles.

Just like buying gas for your vehicles, pay-as-you-go or prepaid Texas electricity allows users to pay their electric bills up front, which is then consumed depending on their usage. People can load months ahead or add funds to their prepaid account on a monthly basis. The system makes use of a smart meter, which displays the user’s actual consumption in real time. The account comes with a smart card, much similar in principle to prepaid phone cards, which users can load up and swipe on their smart meters to specify how much Texas electricity usage is available for him.

Is Pay-As-You-Go Electricity a Viable Option?

Studies have shown that consumers using pay-as-you-go options can save them as much as 10 to 20% from their electricity consumption. Incidentally, this savings would be equivalent to a reduction of about 15 to 20 tons of green house gas emissions. Prepaid options for Texas electricity is still not yet available to all locations although many areas have already started to roll out availability of this option.

What are the Implications of Prepaid Electricity for Consumers?

Previously, people can tell if their homes are consuming large amounts of electricity by looking at how fast the round dial in the electric meters outside their homes spin. With smart meters used in prepaid Texas electricity users, people can now tell how much they have already spent and how much they are going to pay.

With such set-ups, users can gain a better understanding of their electrical usage, opening their eyes to things in and around their house that consumes more electricity than it should be. Not only will this have considerable economic implications on their electricity bills, but they can also help save the environment by saving energy and reducing carbon emissions.




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