Prepaid electricity plans are some of the most basic yet great energy plans on the market. They take a simple concept, paying for something before you use it, and apply it to the hyper-competitive energy market in Texas. Not only are prepaid electricity plans a great way to ensure that everyone has a chance at power, but they could also save you big bucks.

While prepaid electricity plans are available in most parts of Texas, they aren’t available everywhere. It largely depends on the types of companies that service your region and whether or not they deem prepaid electricity as a viable service. If you live in Houston and need to know if you qualify for a prepaid electricity plan, you’ve come to the right place.

Prepaid electricity is exactly what it sounds like, and it’s also the polar opposite of most other plans in Texas. Rather than paying at the end of the month for how many kilowatt-hours of electricity you used, you buy electricity at the start of the month. After you pay for a specified amount of electricity, you’re free to use it up and even exceed it. However, keep in mind that there could be additional penalties if you go over your allotted amount.

As is the case in most parts of the Lonestar State, prepaid electricity plans are readily available in Houston. Whether you’re a new Houston resident looking for your first plan, or a long-time resident looking for a new one, prepaid electricity plans are available to all. Be advised, however, that some companies specializing in prepaid electricity in Houston require the installation of smart meters. If this isn’t for you, EnerGenie will find you an alternative plan.

If you’re on the fence about whether or not prepaid electricity in Houston is suitable for you, let’s look at a list of pros and cons to help you decide.

• No down payment

Lots of electricity plans require a down payment before you start the plan to give your power company peace of mind. Prepaid plans don’t need you to do this.

• No credit checks

Because you’re paying for electricity before you use it, there’s also no need for a credit check. Postpay electricity plans often require a credit check to prove that you’re a reliable customer who can pay your bills.

• No contract

Prepaid plans are also referred to as month-to-month, which means that you have to renew the plan each month by purchasing more electricity. However, this also means that you can stop your plan at the end of each month and opt for a different one if a better option comes along.

• Easy monitoring

Many prepaid electricity plans come with a prepaid meter for your home. This allows you to monitor your energy use easily and know when you’re about to go over your allotted electricity amount.

• Rates are usually higher.

The biggest downside about prepaid electricity plans is that the kilowatt per hour rates are usually higher than fixed or variable rate plans. Prepaid rates tend to be higher because prepaid plans are favored by those who either don’t qualify for postpay electricity or don’t care what their electric bill is.

• Won’t build your credit score

Because there’s no risk involved with a prepaid electricity plan, there’s no chance of building up your credit by paying your bill at the end of the month.

• No stability

Some people like that they’re not locked into a contract and have the freedom to change plans at the end of each month. Others, however, thrive on the security of knowing that they’re locked into a long-term contract.

• More fees

Prepaid electricity in Houston also tends to come with more fees and upcharges. For example, a down payment or electricity deposit isn’t usually required, but there’s usually a surcharge or recharge fee if you go over your initial allotment of electricity.