The Connection Between No Deposit and Pre-paid Electricity Explored

February 20, 2019 0 By jeffgoldblumiswa

In many countries where electricity distribution methods have also been hi-tech, we are increasingly seeing a situation where users have a difficult choice to make: between possibly being applied to the prepaid electricity billing process, or remaining on the traditional post-paid systems. Several jurisdictions have actually switched entirely to the prepaid system, so that drivers, even if they needed, would still have no option but getting hooked onto which new, hi-tech prepaid electricity billing process.

It’s assumed, for a start, we’re all conversant with the processes of postpaid electric power billing system. This is, after many, the technique we often had, even long before electricity distribution systems went hi tech. It’s the situation where you pay for your power after having used it. Typically, the working of the system is hinged on a meter set up at the premises where electricity is in use. This is the meter which tracks electricity consumption, with a meter reader being regularly routed to shoot readings from the meter for billing reasons. It’s when the bills are estimated from the meter readings which the power user is necessary to pay them (after having applied the power); in order to keep on being provided with electrical energy.

The workings of prepaid energy, on the other hand, are akin to the workings of prepaid mobile phone systems: where users pay for a company before trying to use it. From a technological thing of view, the prepaid electricity device is clearly more complex than the postpaid electricity system. It comes with a provision for users to get electricity units in the electricity company (usually in the form of zero cards bearing especially generated numbers) that, upon being digitally fed into the meter, procure a bit of electric power units, which the end user can then proceed to take advantage of.

Now the majority of individuals who happen to be on postpaid electricity billing system will remember that such systems usually has a requirement that buyers pay a deposit, before getting hooked onto the power grid. On another hand, lots of people who have had the ability to utilize the prepaid system will take notice of the point that a lot of prepaid electricity billing systems do not make it essential for the people to create a deposit payment before becoming hooked onto the grid. So, why is it the case? Why is it that many of the’ no deposit electrical energy systems’ tend to be of the prepaid nature?

Well, in order to know why this is the reality, it would be vital for us to appreciate the reasoning behind this requirement for deposit payment before link to electricity grids. This’s exactly where it turns out that, in the postpaid electric power supply system, the deposit is charged to function as a’ guarantee’ so that in case of the individual being completely unable paying for energy, the cash in the deposit will be kept. Seeing that electrical energy is paid after use, this risk of users’ running’ with cash is quite real. In the circumstances of prepaid electrical power, nonetheless, it’s not necessary; because electricity is definitely compensated for before usage. There is therefore no risk of the users’ running away’ with bills, and a requirement for deposit would therefore be superfluous. Houston prepaid electricity company , thus, the link between prepaid electrical energy and’ no deposit electricity’ supply regimens.