Electricity providers in Texas sometimes require an electricity deposit upon starting services. Prepaid electricity plans are a great alternative for those required to pay an upfront electricity deposit. There are also some other ways to satisfy deposit requirements. Let’s take a look at what your deposit options are!
Why is an Electricity Deposit for Residential Customers Required?
Retail Electric Providers will often require an electricity deposit if the customer’s previous bill payment history is sub-par. This allows the electricity provider to be able to offer competitive rates with less fear of no payment. An electricity deposit will earn a small interest rate that’s pre-determined by the Public Utility Commission of Texas. Once you’ve consistently paid your electricity bill for 12 months most providers will refund your electricity deposit. Customers will also receive the interest that was earned on the deposit. The deposit credit will likely be added to the customers next month bill.
How To Get an Electricity Deposit Waived
Customers that can have their previous provider send over a “letter of credit.” This document shows the payment history at a previous provider. If the payment history is great this can have the deposit at the new provider waived. Customers that are 55 (some REP’s require 65) or older may qualify to have their electricity deposit waived. Additionally, victims of family violence that have a documented (certified) letter can have deposits dropped. Medically indigent (proof required) individuals may also qualify to have a deposit waived. It’s best to check with a representative to get clarification on the rules and what’s required for each provider.
Personal Guarantee Electricity Deposit Option
Authorizing a personal guarantee is another way to satisfy a deposit request. With this option in place of a cash deposit, the customer is able to place a guarantee on their account. The guarantor will then be responsible for paying the required deposit amount if the customer defaults on his payments. It’s important to note that some retail electric providers require the guarantor to be an existing customer.
Where to Find the Best Prepaid Electricity Plans in Texas
UtilityHound shops multiple electricity providers and rates across the country in deregulated energy markets for customers. They’re partnered with electric companies that offer prepaid electricity plans in Texas. Customers that have been asked to pay an electricity deposit have the option to sign up with prepaid electricity plans. Residents who choose to sign up with prepaid electricity plans are required to “pay as they go”. They will be asked to put an initial payment down on their account (Ex. $10, $50, $75). Once they start using electricity at their residence and their bill gets close to the amount they initially put down. The retail electric provider will notify them by phone, text, or email that their account is running low. At this time they need to put more money into the account. If the resident fails to place more money into the account they risk having their power shut off.
Ready to get started with a prepaid electricity plan? Simply fill out the form on our Contact Us page and we’ll take care of the rest!