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What Is Prepaid Electricity?

The unknown is often approached with excitement and anticipation – unless money is involved. Then most people view the unknown with dread, fear, and even hatred. Unfortunately, there are some areas in life in which the unknown seems inevitable; a prime example is the electric bill. True, over time people develop a general expectation of what the electric bill will be from month to month. Still, there is always that unknown factor that leads to a lot of worry and stress.

The good news is that the days of dreading the arrival of an electric bill may be coming to an end. And why not? There is prepaid Internet service, prepaid calling cards, and prepaid debit cards. So why not prepaid electricity? The truth is prepaid electricity is already available in areas all over the world, or coming to others where it is widely anticipated. And with this expanding service, there are likely quite a few questions where prepaid electricity is concerned.

How Does it Work?

Perhaps what people want to know most is exactly what prepaid electricity is. The short answer is prepaid electricity is not all that different from a prepaid calling card or prepaid Internet service. The biggest difference from other prepaid services is the use of a Smart Meter or an Advanced Metering System (AMS). With the Smart Meter, electric companies who provide this service are able to gain electricity usage information vital to prepaid electricity plans. Unfortunately, areas that do not have Smart Meters do not offer prepaid electricity plans. The only other requirements, in some cases, are an e-mail address and the ability to receive text messages. While the idea of prepaid electricity may seem a novel concept, the more the service becomes available and the more the benefits become known, the more prepaid electricity will become a way of life.

The Benefits

There is no doubt that prepaid electricity is convenient, but the benefits do not end there. This service takes the guesswork out of paying bills – at least the electric bill. With the unknown eliminated, people are not only able to develop accurate budgets, but they know exactly how much is going toward electricity every month. This translates into money saved rather than spending money for something that was never actually used.

Speaking of saving money, with prepaid electricity and a Smart Meter people can monitor their electricity usage, track electricity hogs, and decrease their usage as well as their expenditures. Finally, there is perhaps one of the greatest benefits of prepaid electricity; by decreasing the amount of electricity used in homes, prepaid electricity goes a long way to help conserve energy and create a greener Earth.

Prepaid electricity is a great way to get a handle on utility budgets, save money, and conserve energy. Check with your utility company to find out if this option is available in your area.

Byline

Along with prepaid electrical services, Phillip Benjamin writes on eco-conscious living, alternative fuel, renewable energy, environmental science, solar power and other kindred topics.