Prepaid and Postpaid System for Electricity

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electricity

Consumers of electricity these days now have the option on having their electricity put on prepaid or postpaid plans. Prepaid plan on electricity is where consumers deposit first or pay in advance to be able to use electricity while postpaid plan is when a consumer pays for his or her electricity after using it.

How does a prepaid electricity system work?

Mainly, consumers must first purchase a card that has special numbers on it that can be loaded by credits that will then enable them to use electricity, depending on the credits that was loaded. For them to use more electricity they can just simply load their accounts again and by loading their accounts regularly, they also eliminate the possibility of being disconnected from the electric company. In some places, loading an account directly is impossible, what must be done is for them to go to the electric company’s billing center and pay a cashier who will then load credits onto their accounts giving them the electricity supply that they can then use.

How does a postpaid electricity system work?

A postpaid electricity system is what is commonly used all over the world in terms of electricity usage and electrical bills. A meter is installed that will then measure the usage of electricity that has been used in a household or building. The consumers will then be billed on a monthly basis. If an instance like a consumer was not able to pay his or her bills, then that person will be disconnected from the system and will no longer be able to use electricity.

Advantages and disadvantages

Of course like any other system, there is always an advantage and a disadvantage. The advantage for having a prepaid system is that the consumers will have control as to when they would want to use electricity and will never have to pay late on bills. The disadvantage in using a prepaid system is that when a possibility like consumers having to forget to load their accounts, they will not have any electricity to use at home and that can be very inconvenient. While postpaid system however, guarantees that consumers always have electricity supplies except of course during blackouts.

And because of the meter that was installed and being used to measure the consumer’s electricity usage, personnel from the electric company will come on a regular basis to check the amount of electricity that the consumers have used thus eliminating the effort on checking their own meter reading. The disadvantage of postpaid systems is that it requires an expensive amount of deposit. When deciding to terminate a customer relationship from the electric company, the refund that the company will give back takes long enough.

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Source by Gerardo Burns