Prepaid electricity rates are offered by local utilities or private companies such as MPower. Prices are generally 5 percent higher than traditional energy rates. To find information on average energy prices by state or region, visit EIA.gov.
Prepaid power is popular in the United Kingdom, South Africa, New Zealand and the southwestern United States. In general, pre-payment options serve lower-income customers.
MPower is the largest and oldest private pre-paid energy provider in the United States. Customers report using 12 percent less power on prepaid plans and paying less despite the higher prices. Prepayment options are available in Texas, California and Arizona.