The main difference is when you pay
Prepaid service uses an account balance you fund before consuming electricity. Postpaid service sends a bill after usage. Neither payment schedule alone tells you the rate, contract length or total cost.
This guide compares the two payment models. For deposit eligibility, use the no-deposit electricity guide; for account operation, read how prepaid service works.
Compare the practical differences
| Question | Prepaid | Postpaid |
|---|---|---|
| When do I pay? | Before usage, then replenish the balance. | After usage, by the bill’s due date. |
| What cash do I need up front? | Check opening funds and any setup fees. | Check deposit requirements or waivers. |
| What must I monitor? | Usage, balance and low-balance notices. | Usage, bill accuracy and payment dates. |
| Is there a fixed rate or contract? | Read the specific offer; payment timing is not the rate type. | Read the specific offer; monthly billing is not a rate guarantee. |
| What if I leave? | Check cancellation terms and unused-balance refunds. | Check cancellation terms, final billing and deposit refunds. |
Separate affordability today from cost over time
An offer with a lower initial payment may be easier to start but more expensive to keep. Conversely, tying up money in a refundable deposit may not work for your current budget even if the ongoing price is lower.
For illustration only, suppose a prepaid option costs 17¢/kWh all-in and a postpaid option costs 15¢/kWh at a steady 1,000 kWh a month. That means $170 versus $150 a month, or a $240 difference over twelve months. These are invented rates, not offers or a claim that prepaid is always dearer.
If the postpaid option asks for a refundable $200 deposit, list that separately as an upfront cash requirement. It is not the same as a $200 fee. Check refund conditions, recurring charges and actual usage before choosing.
Prepaid may suit you when…
- You prefer funding smaller amounts as you go.
- You can receive alerts and reliably add funds before the balance becomes too low.
- The written price and terms fit your needs better than other available options.
Postpaid may suit you when…
- You prefer a monthly bill and scheduled payment date.
- You qualify for acceptable deposit terms or a waiver.
- The plan’s cost and contract fit your expected usage and length of stay.
Check the documents before deciding
For prepaid service, read the Prepaid Disclosure Statement, including balance alerts and disconnection conditions. Texas’s prepaid-service rule describes required disclosures and protections. Prepaid service is not available to customers designated as Critical Care Residential or Chronic Condition Residential under Texas rules. Using medical equipment does not by itself establish that designation. Contact your provider about your status and postpaid options before enrolling.
For either model, read the Electricity Facts Label and Terms of Service. Ask about the rate type, any cancellation fee, fees for payments, and your connection date. A no-credit-check advertisement is not a guarantee that every applicant or address can be served.
Make a choice using your own numbers
- Write down twelve months of usage if available.
- Calculate each offer at low, typical and high usage.
- List upfront cash separately from ongoing and nonrefundable costs.
- Choose a payment schedule you can maintain, then confirm the details with the provider.
Compare fixed and variable pricing separately from payment timing. If leaving a current plan, use the switching checklist first.
Compare plans for your address
Use your ZIP code to start comparing. Confirm address eligibility, the current price and all terms with the provider before enrolling.
Compare electricity plans