Prepaid electricity is an option in which one pays a deposit on a unit kilowatt-hour to use and code is entered into the smart meter that connects electricity from the main grid for use. This prepaid system potentially reduces the number of unpaid bills and power theft. Both of these issues have imposed economic losses for electric suppliers. Texas prepaid electricity meters allow its customers to control and manage their electric consumption and expenditure.

Developing countries have embraced their use and developed countries are switching to have more customers embrace the service. It is an advantageous method for it forces clients to be mindful of their usage of electricity or even switching to a more energy-saving appliance in the home. The service is based on an Advanced Metering Infrastructure (AMI), a technology that involves networks and systems collecting, measuring, analyzing, storing and utilizing energy consumption data. This smart meter communicates with the electric company systems to give its customers an instant statement showing their usage, and remaining balance, savings for the day, and estimated remaining days for usage.

After the smart meter has been installed, to recharge it is as easy and using an app – electric company phone app – and paying there, calling the company’s service number, or going to the electric company’s website to register the account and pay there. It can be paid via Western Union, money gram, bank account transfer, or by mail. Prepaid plans are selected on preference being affected by consumption.

The plans selected fit the clients’ necessities and promote savings. It will be noticed that switching from the old standard meter to a smart meter comes with behavioral changes. These would include switching unwanted lights off, unplugging charged cell phones from their chargers, unplugging TV’s before going to bed, and many more. The reason is it would be noticed that leaving these appliances plugged consumes electricity.

Before selecting a billing option, it would be prudent to read the fine print and carefully selecting the right Texas prepaid electricity plan to avoid being overcharged. A customer could choose a contract charging per kilowatt-hour or an average kilowatt-hour which could vary. The latter would be considered cheaper if the price drops but it depends on the season, and peak – off-peak rates. If the electric company incentivizes its electricity supply, the peak – off-peak implementation would be applied.

This is applied by getting free nights and weekend discounts where the nights and weekends are considered off-peak times. In this category of discounts, electric companies balance their energy production and delivery with power loading to keep their systems running smoothly. Even though electricity demand varies, factors like location, time of the year or day, and consumption patterns, all seem to work out in the end. When it comes to pricing, selection of rates that give discounted rates in the nights and weekends, compared to a constant rate all the time seems to average the same in total costs.

Research shows switching to prepaid electricity is cheaper by up to 14% depending on the usage. This is measured against the standard meter that allows you to use it as you please and the bill is mailed. This is because people start thinking twice about the many times the dishwasher will be run, how many times will the iron box be used in a week, or how many electric appliances will stay plugged overnight.

Many people have switched to prepaid meter boxes at an estimation of 2.62 million by the year 2021. Big cooperative companies have switched to prepaid electric services standing at over 170 in the US.