Are you shopping around for an electric company and not sure if you should go with a prepaid electric plan or a postpaid electric plan? Have you been asking questions like, “Which has better electricity?” or “What service is more dependable?” or “What electric plan will be the most affordable?” The bad news is, the answer to those questions is not cut and dry. The good news is we are here to help by explaining the differences between prepaid and postpaid electricity plans so that you can make the best decision for you.
When it comes down to it, prepaid electricity service and postpaid electricity service are two different billing and payment methods for getting and using electricity. Below are the main key differences between the two methods.
Prepaid Electricity Service: With prepaid electricity service, customers pay for electricity in advance. They purchase a certain amount of electricity and load them onto their prepaid meter or account. Electricity consumption is deducted from this balance as it is used.
Postpaid Electricity Service: With postpaid electricity service, customers are billed for their electricity usage after they have used it. The utility company measures the electricity consumption over a billing period (usually monthly) and then sends an electric bill to the customer for the amount used.
When Payments are Made
Prepaid Electricity Service: Payment is made upfront before electricity is consumed. Customers must keep their prepaid account balance over a specific amount to ensure uninterrupted electric service. For example, Pogo requires that an account balance remain over $0.01.
Postpaid Electricity Service: Payment is made after the electricity is consumed. Customers use electricity throughout the billing period, and they are billed for that usage at the end of the period.
Control and Visibility
Prepaid Electricity Service: Prepaid electric customers have real-time visibility into their electricity consumption and remaining balance on their account. Customers can actively manage how much electricity they use to stay within their budget and avoid overspending.
Postpaid Electricity Service: Postpaid customers typically receive a detailed bill with information about their electricity consumption after the fact. They may not have real-time control over their usage unless they actively monitor it, which can be a challenge.
Credit Checks and Deposits
Prepaid Electricity Service: Prepaid energy service with Pogo does not require a credit check or a security deposit. This speeds up the process of signing up with us, and getting the power turned on the same day.
Postpaid Electricity Service: Postpaid service may require a credit check, and some retailers also may ask for a security deposit to ensure payment. The deposit is typically refundable after a certain period of timely payments. If you are late on your payment, the electric company may keep the deposit until your contract is over, or you switch to a new provider.
Prepaid Electricity Service: Prepay electric plans offer flexibility in budgeting. Customers can control their electricity usage and spending more directly.
Postpaid Electricity Service: Postpaid service provides the convenience of using electricity without needing to load money onto your electric account. Customers receive a bill once a month that is based on electricity consumption. As long as you pay the bill by the due date, your electric service will not be interrupted.
Is Prepaid or Postpaid Best?
Both prepaid electric services and postpaid electric services have advantages and disadvantages. Truth is, both options provide the same quality of electricity and one is not more dependable than the other. You are literally getting the same electricity, no matter the type of plan you choose. The differences are found mostly in how you receive and pay for your electricity. The choice often depends on individual preferences, lifestyle and finances.
If you can pay a deposit, plus have good credit, never move and rather receive a monthly bill, a postpaid electric plan would fit your lifestyle. Someone who considers themself more of a nomad, having an electric service plan that requires a long-term commitment is probably not the ideal electricity plan for you.
If you like keeping more of your money, as well as love having information that you need to budget your electric usage and spend, our prepay electricity plan is the way to go. When you are ready, GO POGO! Sign up for our no hassle, no headache electric plan and get power today.