How Does Prepaid Electricity Work?

man checking prepaid account

Smart meter technology allows for greater choice and control over the electricity you use in your home. This extends to prepaid electricity plans which allow customers to pay for electricity before they use it, much like pay-as-you-go phone plans.

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

Instead of getting a bill every month, you'll receive alerts to your mobile device and/or email telling you how much electricity you're using and how much remains on your balance.

In the long run, this can be a powerful tool to help you save energy and money.

How to Refill Your Prepaid Energy Account

Refilling your prepaid electricity account is easier than you might think. You can visit one of our designated pay stations and pay in person, or via your online account manager. It's important to keep a daily balance of at least $25 to avoid service interruption.

What happens if you run out of prepaid electricity?

When you get close to using up your balance, you'll receive another set of notifications delivered electronically. These notifications will show your remaining balance, along with an estimate of how many days you have remaining.

Of course, when you get that estimate, it's important to remember that your electricity needs can change from day to day. That's why it's always a good idea to put more money into your account as soon as you get the low-balance notice. This way, you can keep the house lights on. If you do lose power because your prepaid electricity balance runs out, simply replenish your balance and your power will be restored.

There may be interruption to your electricity service if you have less than the minimum amount in your account. If your account balance is equal to or less than $0.00, Direct Energy may request that the TDU interrupt your electricity service. When this happens, your electricity service will cease until you restore a positive balance to your account. 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, interruption of electricity service 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 that you maintain a daily balance of at least $25.00 on your account to avoid interruption.

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

Because there are no credit checks, deposits or long-term contracts, a prepaid electricity plan is an attractive option for many Texas customers. One of the main advantages of having prepaid electricity is that you have the ability to more easily keep track of and control your electricity expenses. You will never have to deal with an unexpectedly high electricity bill! No more bill shock. When you're paying for electricity as you use it, you know exactly what you are paying for and can manage your usage. Prepaid plans allow you to enjoy low rates and more flexible electric service.