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  • Writer's pictureGabe C

Lower Electricity Rate

Updated: Mar 3, 2023

Cartoon searchinf for lower electricity rates
In search for the lowest electricity rate

When we look for the cheapest electricity rate, we must ask what is best for us.

Many times, we find ourselves in the urgency of connecting our residential electricity service and do not have the time or patience to find what really suits us.

The cheapest electricity rate can be as much as with the prepaid electricity service or the residential electricity contract.

Here we must also see what we can obtain. All residential electricity companies with a contract will ask to check the credit, in case we can't verify the credit, or the credit is not in good condition, then a deposit will be charged.

The deposit in residential electricity with a contract.

Paying a deposit does not guarantee a cheaper electricity rate. In the case of residential electricity plans with very low rates, they will charge a higher deposit.

The deposit is to hook the customer and try to retain the customer and not cancel the electricity service. Normally, that deposit is kept and returned to the client at the end of the contract, whether it is 12, 24, or 36 months.

Prepaid light does not ask for a deposit.

That's right, the prepaid electricity does not ask for a deposit. Also, as the customer is more likely to leave the electricity company, the rate will be a little higher. On average, the difference with the contract will be 1 cent.

The advantage of prepaid residential electricity is that to obtain electricity service is that a deposit will not be required, and it is not necessary to make large payments. Now, this comes with a responsibility.

How to start the prepaid energy service.

The customer can start the service with a minimum payment of $ 40. Ask yourself, how long will $ 40 light last?

My recommendation is to start the prepaid electricity service with what you think you will spend in a month.

On average a small house or a medium apartment uses around 1000 kWh per month. The average electricity tariff with a contract is 12 cents. At the end of the month, the customer will be paying around $ 130 (including taxes) for that electricity bill. The cheapest pre-paid energy rate is around 13.5 cents. I can guarantee that if the client starts the prepaid electricity service for $ 130, it will last more than 30 days.

Why is it that prepaid electricity last longer?

Text notifications helps to know your energy usage

It is very simple, the electricity delivered sends daily notifications of the use of energy, this way we see how many kilowatts are being consumed. As a natural human beings, we always want to save more and more. Therefore, when we see our consumption, we do things or change our behavior to spend less energy, in this way electricity lasts longer and we will pay less.

Unlike residential electricity, a contract does not tell us how much we consume daily, only the accumulated energy used for the 30 days of the month. We cannot know what we did or what day we save energy.

Call us and we will help you understand all this about the difference between the cheapest energy rate, with an electricity contract, or prepaid electricity.


You can enroll yourself, click here for Payless Power

Get more ideas on how to pay less for electricity on our blog

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