Texas Electricity With Low or No Deposits

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 de-regulated 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 with 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 in 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 some 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 timeline, 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 they pay as they go.

As your home consumes use 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.

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You should always read a plan’s EFL details to decide if it’s a fit for you, but our system does the tedious math to help you compare estimated costs. Of course, your future bill amounts will depend on your future usage.

You will find a widget on Home Energy Club which fetches your home’s energy usage data from Smart Meter Texas (SMT) and runs calculations of the rate structures of energy plans to help you conveniently estimate the cost of energy plans you are considering, based on your prior 12 months of energy usage as reported by SMT.

In one of the text panels of the widget, you will see an authorization button. By checking the permission box above the fields in which you enter your name and email address, and clicking on the authorization button, you are authorizing Smart Meter Texas to provide us with your location’s energy usage information so that our system can run cost calculations. It’s important to note that errors can occur when developing and running calculations, and the Company does not guarantee that its cost numbers are correct. You should always read the Electricity Facts Label (EFL) for each energy plan you are considering before enrolling, and make an independent decision on whether the plan is an appropriate fit for your home based on your own calculations and all the information disclosed by energy providers in the EFL.

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