What is pay-as-you-go electricity?

Pay-as-you-go (prepaid) electricity lets you buy power in advance instead of receiving a monthly bill. There is usually no credit check and no deposit. You add money to a balance; when the balance runs out, service can disconnect.

Is prepaid electricity cheaper than a regular plan?

Not always. Prepaid plans skip a deposit, but the all-in cost can be higher once you add the energy rate, delivery charges, daily fees, and reconnect fees if you run out of balance. Compare the Electricity Facts Label at 500, 1,000, and 2,000 kWh — do not assume prepaid is the cheapest option. Low-usage homes should read the true-cost guide before enrolling.

What happens if my prepaid balance hits zero?

Service can shut off. You may need to add money and wait for reconnection. Extreme-weather rules in Texas can limit disconnects, but you should not rely on that. Keep a buffer on the account.

Does pay-as-you-go include delivery charges?

Yes. Your utility still delivers the power and still charges for poles, wires, and the meter. Prepaid does not remove CenterPoint, Oncor, AEP Texas, or TNMP delivery charges. Those fees come out of the same balance you top up.

Prepaid electricity

Pay as you go — without pretending it is always cheaper.

No credit check and no deposit. You buy power in advance and top up as you go. Enter your ZIP to see prepaid plans at your address. This page is not the same as our cheap-electricity guide.

True cost

Read this before you enroll in prepaid.

Prepaid is not a guaranteed savings plan.

Pay-as-you-go skips the deposit and the credit check. It does not skip delivery charges, daily fees, or the risk of a shutoff if the balance hits zero. A low advertised ¢/kWh can still cost more at 500 kWh after base fees — the same trap as many “cheap” postpaid plans.

Compare the Electricity Facts Label at 500, 1,000, and 2,000 kWh. Keep a buffer on the account. If you want a regular monthly bill instead, start from cheap electricity plans or all residential plans — we keep those pages separate on purpose.

Full true-cost guide: Texas prepaid electricity

How it works

Top up. Use power. Do not run the balance to zero.

1. Enroll without a deposit

Most prepaid plans skip the credit check. You start service by funding an opening balance instead of paying a deposit.

2. Delivery still comes out of the same pot

Your utility still owns the wires. CenterPoint, Oncor, AEP Texas, or TNMP delivery charges reduce the same prepaid balance.

3. Add money before you run out

If the balance hits zero, service can disconnect. Reconnect fees and wait time are part of the true cost — not a footnote.

FAQ

Pay as you go, answered honestly.

Pay-as-you-go (prepaid) electricity lets you buy power in advance instead of receiving a monthly bill. There is usually no credit check and no deposit. You add money to a balance; when the balance runs out, service can disconnect.
Not always. Prepaid plans skip a deposit, but the all-in cost can be higher once you add the energy rate, delivery charges, daily fees, and reconnect fees if you run out of balance. Compare the Electricity Facts Label at 500, 1,000, and 2,000 kWh.
Service can shut off. You may need to add money and wait for reconnection. Extreme-weather rules in Texas can limit disconnects, but you should not rely on that. Keep a buffer on the account.
Yes. Your utility still delivers the power and still charges for poles, wires, and the meter. Prepaid does not remove CenterPoint, Oncor, AEP Texas, or TNMP delivery charges.