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prepaid electricity plan in texas

What is Pay as You Go Electricity?

No matter where you are in Texas, electricity is a commodity you can no longer live without. Even the Amish are starting to use generators and solar power to produce their own electricity off the grid. Electricity is also an area where you have the potential to save money or spend it depending on the type of plan and contract that you sign up for.

Thanks to deregulation, you have the power to choose your own electric plan. One of the many options that you have to choose from is known as a pay-as-you-go plan. In this article, we’ll dive into this type of plan and how it works.

What is Pay as You Go Electricity in Texas?

Pay as you go electricity is another name for the more common term of prepaid electricity. The two terms are often used interchangeably and mean the same thing. There are over 100 retail electric providers in Texas, and many of them offer some form of a pay-as-you-go plan. Whether or not this plan is right for you depends on your living situation and preferences. Contact us to find the best pay-as-you-go plans available in your area!

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pay as you go electricity in texas

How Does Pay as You Go Electricity Work?

Just as with prepaid electricity plans, pay-as-you-go plans are when you pay for your electricity at the start of the month before you use it. The concept is very similar to prepaid phone plans or prepaid TV or internet plans. With phones, you pay at the start of the month for a certain amount of data, which you can then use throughout the month as needed.

Pay as you go electricity works the same way. You sign up with a retail electric provider and pay them for a set amount of electricity. The most common amounts are 1,000-kilowatt hours, 1,500-kilowatt hours, or 2,000-kilowatt hours. Different companies charge different amounts for their electricity, so choosing the right one is crucial.

These types of plans are called pay-as-you-go plans because you can opt-out of them at the end of each month. Not only do you pay as you go, but you also decide as you go. If you get tired of not having a consistent contract and having to renew each month, you’re free to pursue other options.

Since electricity was deregulated in Texas, pay-as-you-go plans have been an option. They have been around for as long as any other electricity plans and have been more popular or less popular at times. At any rate, whether or not a type of plan is popular shouldn’t factor into the plan you choose. Everyone’s situation is different, which means that the right plan for someone else isn’t necessarily the right plan for you.

Does Every REP Offer Pay as You Go Electricity?

While many REPs in Texas offer some form of a pay-as-you-go plan, not all of them do. Every REP has to determine what types of plans they want to offer and how they want to structure them. However, it does play into the favor of a REP to offer as many different plans as possible to please their clientele. Contact us at EnerGenie to find out which REPs in your area offer pay-as-you-go plans and if one of them is right for you.

Is Pay as You Go Electricity the Same as Prepaid?

Don’t be confused by all the different terms that companies throw around because pay-as-you-go electricity is the same as prepaid electricity. The two terms are often used interchangeably, but most companies prefer the term prepaid because it’s shorter and less confusing.

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Pros and Cons of Pay as You Go Electricity Plans

Pay as you go electricity plans have their place in the world, but they’re not for everyone. It’s important that you take your needs and circumstances into consideration before jumping the gun and signing up for a pay-as-you-go plan. To help make your life easier, let’s look at some of the pros and cons.


  1. One of the main reasons that people like pay-as-you-go plans is because of their bills during the summer months. If you pay for your electricity at the start of the month, you know exactly how much you’re going to spend. It sounds simple, but this concept helps people from blowing through their budget.
  2. You also have more control over your energy usage and how much you’re paying for it. Fixed and variable rate plans often surprise people with tiered rates and hidden rates which can lead to higher spending at the end of the month.
  3. You also have much more freedom and flexibility with a pay-as-you-go plan. You won’t have to sign a 12 to a 24-month contract and get locked in with no way out. If you get tired of your pay-as-you-go plan, simply choose a different one at the end of the month.
  4. There are also no credit checks or deposits with pay-as-you-go plans because you pay for your electricity up front.


  1. The main con is that rates are usually higher which means you might end up paying more than you would on a fixed or variable rate plan.
  2. Not all REPs notify you when you’re almost out of electricity. That means they can turn your power off and leave it off until you contact them and purchase more electricity.


How to Find the Best Pay as You Go Plans

Whether you end up choosing a pay-as-you-go plan or a different one, there’s only one surefire way to guarantee that you don’t overspend. EnerGenie is an electricity concierge service that uses your location and energy usage history to find the best electricity plan for you. If a prepaid plan is what you’re looking for, then we’ll find you the best one. If, however, you’re open to alternatives, EnerGenie will help with that as well. EnerGenie will also monitor your plan once you’re enrolled and keep a constant lookout in case something better comes along!

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