The Cost Advantages of Prepaid Electricity

We start with an assumption that everyone should, byAs it turns out, the greatest motivation for this
now, be conversant with the workings of prepaidgravitation towards electricity systems is the cost
electricity. But just to ensure that nobody is left out, weadvantages associated with such prepaid electricity.
could mention in passing that a prepaid electricityThese are not things that can be taken lightly. There
system is one where electricity users pay forare cost advantages, significant ones, both on the user
electricity before actually getting to use it. They firstand power distributor side.
pay for the electricity, and then make use of it - inOn the user's side, we see the fact that the electricity
much the same way that people usually first pay forsystems make possible full control over electricity
their sugar or salt before making use of it. This is, ofexpenditure being a great attraction. People always
course, in contrast to the traditional electricity billingfelt that the traditional system for electricity billing
system, where people only get to pay for theirtended to rob them of control over their electricity
electricity after having used it.expenditure, and it comes as a great relief for them to
The exact workings of electricity vary from onehave a system through which they have complete
implementation to another. In most cases though, itcontrol over such expenditure. On the user's side too,
works through a voucher system, where electricitythe prepaid electricity system comes with a
users purchase a voucher bearing a number whichconsiderable cost advantage. There is also the fact
they then proceed to feed into the prepaid electricitythat prepaid electricity shields the users from the
meters, thereby procuring a number of electricitypenalties that tend to arise out of late bill payments as
power units commensurate with the value of theiranother great attraction on the users' side. These
vouchers. It is this electricity that they are thenpenalties for late payment of bills are penalties that
supposed to make use of, and ensure that theyvirtually everybody on a postpaid electricity system is
purchase more units of before they run out of thebound to suffer from at one time or another, seeing
ones so loaded. The consequence of not purchasingthe logistics involved in bill payments. And talking of the
more units (or 'recharging' as it is often referred to)actual payments, we see the electricity system being
would be a situation where the user eventually getsa system where payments are virtually free (it is just a
disconnected from the power grid.matter of buying ready-made vouchers). This is not
This electricity system has proved to be very popular,the case with postpaid electricity, where payments
with many people opting for it over the traditionalalways come at a cost: whether that is by way of
postpaid system on the first opportunity to do so. Sofares to the electricity company's premises where one
strong has this trend been that many power distributioncan make the payment, or the costs of sending
companies have been forced to eventually phase outchecks (or doing electronic funds transfers) to the
the traditional postpaid power systems in favor of thecompanies. Granted, these tend to be small costs, but
prepaid electricity systems. The electricity companies,in the long run, they can accumulate to substantial
on their parts, have also done nothing to hide theiramounts; which one gets to avoid altogether by opting
partiality to these prepaid electricity regimes.for prepaid electricity.