Traditionally, electricity is consumed first and paid for later (after you receive your bill). This “postpaid” model usually requires consumers to demonstrate that they have sufficient credit to pay the bill. If they don’t they are asked to put up a cash deposit. Since bills are issued monthly, months with high usage can result in higher bills. As a result, postpaid service isn’t right for everyone.
If you’ve had credit challenges or unpredictable income, you may need another option. That’s why there’s prepaid electricity. As its name implies, you maintain an account balance sufficient to cover your expected consumption. It’s sort of like feeding a parking meter or maintaining a toll-tag account. You’re in control of how frequently and how much money you put into your account. The goal is simply to keep enough funds in your account to prevent your service from being disconnected.