GoodCharlie Blog

Is Prepaid Electricity in Houston Right for Me?

Written by Daryl Lawrence | Mar 2, 2023 7:44:41 PM

Just like when you're choosing a new internet or TV plan, you have a lot of options when choosing an electricity plan. There are hundreds of electricity companies offering dozens of plans with different rates, perks, and terms. In addition to all the different individual plans, there are also different types of plans to choose from. 

While traditional fixed-rate plans where you pay for electricity at the end of the month are the most common type of electricity plans in Houston, they aren't the only option. If you don't like the idea of committing to a long-term plan you have the option of purchasing prepaid electricity in Houston. If you're curious and want to know if prepaid electricity is right for you, you've come to the right place. 

 

  1. What is Prepaid Electricity in Houston? 
  2. What are the Advantages of Prepaid Electricity in Houston? 
  3. What are the Downsides of Prepaid Electricity in Houston? 
  4. Is Prepaid Electricity Right for Me? 
  5. What's the Best Alternative to Prepaid Electricity in Houston? 
  6.  

What is Prepaid Electricity in Houston? 

Prepaid electricity in Houston works the same way that prepaid phone plans do. 

You sign up for a prepaid electricity plan with an REP. 
You purchase anywhere from 500 to 2,000+ kilowatt-hours of electricity from the REP at the start of the month. 
You can then use the electricity that you purchased throughout the month. 
At the end of the month, you'll have to either purchase more electricity or sign up for a new plan. 

 

The main difference between prepaid electricity in Houston and postpay electricity has to do with when you pay for the electricity you use. With prepaid plans, you buy electricity before using it, whereas with postpaid plans, you use electricity first, then pay for it at the end of the month. Contact us to learn more about prepaid and postpaid plans and to find out which option is right for you. 

What are the Advantages of Prepaid Electricity in Houston? 

No Deposit or Credit Check 

One of the most alluring aspects of prepaid electricity in Houston is that prepaid companies don't require a deposit or a credit check. Because you're paying for electricity before you use it, REPs aren't facing any potential risk or liability in the event that you can't pay for your electricity. 

Flexibility 

The biggest advantage of prepaid electricity in Houston is flexibility. Prepaid electricity plans are on a month-to-month basis, which means that you aren't obligated to stick with the same company or plan long-term. Once you get tired of overpaying for prepaid electricity, you can simply tap out and find a new plan. 

No Commitment 

For most people, commitment issues run beyond the fear of marriage or getting into a long-term relationship. They extend to not wanting to make any type of long-term commitment, including to an electricity company. Since prepaid plans are month-to-month, people don't have to commit to anything beyond the first month. 

What are the Downsides of Prepaid Electricity in Houston? 

Higher Rates 

The biggest downside of prepaid electricity in Houston is that it's more expensive than postpaid electricity. Prepaid plans often have rates that are four to seven cents higher per kWh than postpaid plans. However, because people like the allure of no deposit, no down payment, and no commitment, they're willing to pay the extra cost. 

No Carry-Over 

The second downside of prepaid electricity in Houston is that your unused electricity doesn't carry over to the next month. For example, if you pay for 2,000 kilowatt-hours of electricity in January but only use 1,500, the unused 500 kWh of electricity doesn't carry over into February. You also won't get refunded for any unused electricity. 

So, in addition to overpaying for prepaid electricity, you also just wasted 500 kWh of power. Depending on your rate, this could mean anywhere from $50 to $150 of wasted electricity. 

Possible Power Termination

Although it doesn't happen as often as it used to, you run the risk of getting your power cut off with prepaid electricity plans. REPs aren't technically obligated to warn you if you're close to using all of your prepaid electricity for the month. Instead, it's up to you to monitor your usage and purchase more electricity if you see that you're about to run out. 

While prepaid power companies do a better job today of notifying customers when they're nearly out of electricity, it's still up to you to purchase more if you're close to your limit. If you fail to do so, your power company will simply cut you off and turn off power to your home or business. 

Is Prepaid Electricity Right for Me? 

If you just moved to Houston and you aren't familiar with the electricity market, a prepaid electricity plan isn't a bad idea. It will give you some time to do research so that you can choose the best long-term electricity plan. Otherwise, you'll constantly overpay with prepaid electricity in Houston, and you won't receive the rewards and perks that are typical of fixed-rate plans. 

What's the Best Alternative to Prepaid Electricity in Houston? 

If you don’t think that month-to-month electricity is right for you, you should consider a fixed-rate plan from GoodCharlie Energy. We’re one of the newest and best retail electric providers in Texas, and we exclusively offer fixed-rate electricity plans. We also like to keep things simple, which means we offer three plan options to our customers when they live in one of our service areas. 

Fixed-rate plans from GoodCharlie offer more stability, reliability, and lower rates than prepaid electricity in Houston. We also have outstanding rewards and pack benefits, especially for Texans who own and love pets. We offer things like 24/7 video vet access, a $750 pet emergency fund, and more! Here are a few other reasons to consider enrolling in a plan with GoodCharlie. 

 

  • Unmatched Pack Benefits that are geared towards helping your pets stay safe. 
  • A dedication to making Texas the best place for a dog to live in. 
  • Outstanding customer service and a handy blog to answer all your pet and electricity questions. 
  • We’re partnered with several of the top animal shelters in Houston and send monthly donations their way. 
  • Renewable energy options on each of our plans. 

 

To date, we’ve donated nearly $50,000 to animal shelters and have impacted the lives of more than 300 animals. We’re truly a company that cares about more than the bottom line, and we’d love to partner with you. Contact us to make the change to GoodCharlie and start saving money and lives today!