How does prepaid electricity work?

Direct Energy, November 1, 2023

4 minute read

How does prepaid electricity work?

Direct Energy, November 1, 2023

4 minute read

Did you know you don't have to use traditional billing when paying for your energy bill? In some states like Texas, you can use prepaid plans to simplify your life. Smart meter technology allows for greater choice and control over the electricity you use in your home. This extends to prepaid electricity plans, which enable customers to pay for electricity before they use it, much like pay-as-you-go phone plans.

Prepaid electricity plans are an easy way to be a Texas electricity customer. All you need to do is pay for your electricity before using it, which is why these are often called pay-as-you-go plans. They're popular because they are flexible and don't require credit checks, deposits, or long-term contracts. You pay for how much electricity you want and then go about your routine.

In the long run, this can be a powerful tool to help you save energy and money. Want to know if prepaid is right for you? Check out our blog on prepaid vs. contract electricity plans.

woman using a laptop
woman using a laptop
woman using a laptop

How to refill your prepaid energy account

Refilling your prepaid electricity account is easier than you might think. You can visit designated pay stations and pay in person or via your online account manager. Keeping a daily balance of at least $25 is essential to avoid service interruption.

What happens if you run out of prepaid electricity?

You'll receive text or email notifications when you get close to using up your balance. These notifications will show your remaining balance and estimate how many days of electricity service you have left.

It's important to remember that your electricity needs can change daily. That's why putting more money into your account is always a good idea when you get the low-balance notice. If you lose power because your prepaid electricity balance runs out, refill your account, and your energy will be restored.

There may be an interruption to your electricity service if you have less than the minimum amount in your account. For example, if your account balance is equal to or less than $0, Direct Energy may request a service interruption until you refill your account to a positive balance.

In some circumstances, Direct Energy will not interrupt your electricity service in accordance with Section 25.498(j) of the Public Utility Commission of Texas ("PUCT") rules, even if your account balance is equal to or less than $0.00. In such instances, electricity service interruption may be delayed until the next eligible business day.

Interruption will be considered the same as disconnection in this Agreement. If service is interrupted, you may be assessed a disconnect/reconnect fee at the time of interruption. Direct Energy strongly recommends maintaining a daily balance of at least $25.00 in your account.

What are some of the benefits of a prepaid electricity plan?

Prepaid electricity plans can be attractive options because there are no credit checks, deposits or long-term contracts. One of the main advantages of having prepaid electricity is that you can easily track and control your electricity expenses. In other words, a high energy bill will never catch you off guard! When you pay for electricity as you use it, you know exactly what you are paying for and can manage your usage. Additionally, prepaid plans allow you to enjoy low rates and more flexible electric service.

Advantages of prepaid electricity

  1. No credit checks or deposits are required
  2. Freedom from long-term contracts
  3. No more bill shock
  4. Easy to refill your account – pay online or in person
  5. You're in control of your energy usage and know exactly what you're paying for

If you're ready to sign up for a prepaid electricity plan, visit us online to learn more.


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Amazon Prime on us

Want to enjoy all the shopping, streaming and savings you want with Amazon Prime, just for paying your electricity bill? Get an Amazon Prime membership on us with select plans! 

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