Many Texas power companies require customers to make a deposit before supplying them with power. If you’re new to Texas or considering changing electricity plans, you may wonder, “How much is the deposit for electricity?”
More light companies are adding deposit requirements to start electric service. Find out everything you need to know about low deposits and no-deposit electricity plans.
What is an Electricity Provider Deposit?
An electricity deposit is an amount of money that a provider requires consumers to pay before connecting them to their power source. The purpose of an electricity provider deposit is to protect the company from losses if a consumer stops paying their bill. Most energy providers don’t charge consumers until the month after they use energy, which could cost them money if the customer doesn’t pay for the already-used energy.
If you stop paying your electricity bill, the power company may use the deposit to cover what you owe. If you continue not to pay your power bill, the electric provider may turn off your power.
Who are The Light Companies with Low or No-Deposit Options?
Most of Texas is in a deregulated electricity market, meaning you have many options to choose from. There are many electricity companies in Texas, making it easy to find one with low or no-deposit options.
Here are some of the most recognized electric providers to consider:
Payless Power
Payless Power is a reputable Texas prepaid energy provider with both low and no-deposit plans. Payless Power’s pay-as-you-go electricity plans do not require a credit check or deposit. They also provide same-day service connections.
Reliant Energy
Reliant Energy often offers prepaid plans and an abundance of other energy plan options to fit a wide range of household needs. This energy provider also has good reviews from the Better Business Bureau and the State of Texas. Many customers report that the company is willing to work with consumers when it comes to deposits.
TXU Energy
TXU Energy is an electricity provider in Texas with good reviews. As long as you pay your energy bill on time for 12 months, you’ll receive your deposit back plus interest in the form of a credit. TXU Energy also offers deposit assistance programs to those who qualify.
Who Has to Pay an Electricity Deposit?
A history of late or missed utility payments may require you to pay a deposit. While this is sometimes connected to a good credit score, this is not always the case. A person who has a good credit score may still have to pay an electricity deposit. Consumers with no utility payment history or the inability to verify their identity may also have to pay a deposit when choosing their electricity plan.
How Much is the Deposit for Electricity?
The deposit requirements vary depending on your credit score, electricity provider, and utility payment history. Also, different electric providers in Texas require varying amounts for deposits based on their own policies.
Your payment history is usually a consideration of how much you pay for a deposit. The electric company may require a deposit if you have a history of late or missed payments. They may also charge a deposit if you have ever defaulted on other utility payments. While the deposit requirements vary between providers, most Texas energy providers do charge a deposit.
When Do I Get My Electricity Deposit Back?
Many Texas utility providers may return your deposit after 12 on-time payments. Making late payments doesn’t mean you forfeit your deposit. Instead, the electricity company may not return your deposit to you until you close the account and are no longer a customer. The company will use all or a portion of your deposit to cover any balance you leave behind.
Most Texas electricity providers will hold your deposit in an interest-earning account. If and when they return your deposit after the required time, you’ll also receive any interest the deposit earned.
What Is Month-to-Month Electricity?
Month-to-month electricity plans are an alternative to ongoing service. A month-to-month plan allows you to quickly terminate the plan or easily switch plans without worrying about early termination fees on long-term contracts.
These plans usually require a deposit and are especially helpful when you anticipate moving from a home or apartment in the near term, and don’t wish to enroll in a long-term contract for any reason.
For month-to-month plans, it’s best to call an energy provider operator to discuss your options at the special electricity company phone numbers. An operator can make sure that you receive a fixed rate for your month-to-month plan, even though the rate may change during each monthly cycle.
What is a Prepaid No-Deposit Electricity Plan?
Prepaid plans are no-deposit plans, and they have no credit checks or long-term contracts. Customers set up an account and fund an initial account balance and then pay as they go.
As your home consumes electricity, funds are pulled from the account to pay for electricity usage. With a prepaid plan, you can also have your electricity turned on the same day.
Prepaid plans include:
- No deposit
- No contract
- No credit check
- Same-day electric service
The best way to avoid high deposit requirements is to make your electricity bill payments on time. Setting up automatic payments may help you remember to pay your bill each month. Pay-as-you-go electricity plans give you the flexibility to choose your energy supplier without having to pay a large deposit.
Not sure which low-deposit electricity provider is right for you? At Home Energy Club, we have all the information you need to choose the best energy provider for your household with the lowest deposit requirements.
