Every year as the summer season comes to an end, many Kiwis are preparing themselves for a rise in their power bill. With the colder season approaching, it’s a given that both households and businesses will be using more energy in attempt to keep warm.
If you’re one of those people who is already beginning to stress about expensive power bills in winter, prepaying your power may be an ideal option for you. Prepaid power is simply a “pay as you go” system, rather than getting billed at the end of each month.
With new smart meter technology, you can find out exactly how much energy your property is using - helping you to save money by becoming more energy efficient. In fact, Contact Energy recently stated that customers will save around $250 a year on a prepaid plan!
There are many power companies that allow you to prepay your power bills, generally with no upfront costs when you sign up. Let’s take a further look into how prepaying your power can save you money on your electricity bill.
The pros of prepaying your power bill
Reason 1: Easily manage energy usage
Prepaying for your power comes with the great advantage of being able to easily monitor and manage your energy consumption. Smart meters can inform you when you’re misusing your energy, so you can come up with options to cut down on usage. They can also inform users of how energy efficient both new and existing appliances are.
Reason 2: No bills
Not only does prepaid power allow you to save on power bills, you won’t have to deal with any bills at all! Many electricity providers provide programs (via your smartphone or laptop) that allow you to view energy usage in real time, as well as past month’s costs and usage.
You’ll always have an idea of what your current balance is, so you can monitor and adjust your power usage habits accordingly.
Reason 3: It’s simple to buy power
Nowadays, paying for electricity in advance is as easy as getting out your smartphone and pressing a few buttons. Just like a prepaid mobile phone plan, you can control how much you pay, and when you pay for your power.
Power can be conveniently be purchased through a power company’s website, app or in store. You can even build up extra credit in preparation for the coming winter season!
Reason 4: Manage cash flow better
One of the biggest perks of prepaying for your power is that you’ll never have to worry about receiving an unexpectedly high or exaggerated power bill at the end of the month. Being able to easily track and monitor overall power costs will enable you to allocate expenses properly and better manage your cash flow.
The cons of prepaying your power bill
Reason 1: One single rate
The majority of prepayment power meters provided by gas and power companies are ‘single rate’. This means that you will pay the same for cost for your electricity, regardless of what time you use it. Therefore, a prepaid plan may be more expensive in regards to energy supply.
Reason 2: Minimum account balance required
When you sign up for a prepaid power, you’ll find that most plans require you to keep a minimum account balance.
Some power providers have automatic recharge options, so if your account balance drops below the minimum amount, you’ll automatically be recharged. This may end up being an unexpected expense for those not actively monitoring their electricity account!
Reason 3: Expensive installation costs
Although there is generally no joining fee for prepaid power, you may be looking at expensive installation costs. Prepaid electricity requires a special smart meter to be fitted to the property, which involves a service fee. The cost to install this in your home or business averages around $140, depending on which provider you sign up with.
Reason 4: Electricity can be cut off
For prepaid power plans that don’t automatically top up when your account when it gets low, it’s likely that manual payments are required. This means that if, for some reason, your account drops below the minimum amount and you don’t top it back up, your energy can be cut off completely.
Get the best prepay power deal
With a number of great benefits, it’s easy to see why a prepaid electricity plan is becoming more and more popular in homes and businesses throughout the country.
Are you ready to save on power bills and easily track and monitor your energy consumption? Now is the time to sign up and start prepaying for your power! Several of New Zealand’s leading power providers offer a variety of great prepaid power plans, some including amazing sign up offers to get you on board.
You can take a look at and compare power companies by using our online comparison tool. It’s free and easy to use, and you can find the best prepaid power plans for your needs within minutes! Just enter a few details about your location and current usage, and we’ll list the top prepaid plan prices and benefits side by side.