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Are you considering switching to prepaid electricity in South Africa? It has several benefits, like giving you more control over how much energy you use. Of course, there are also a few disadvantages, like the risk of disconnection if you forget to top up your credit.
We’ll explain prepaid power and how it works, exploring its advantages and disadvantages to help you decide which system is best for you.
Let’s get started.
What Is Prepaid Electricity?
It’s just like it sounds: consumers purchase power before they use it. You can purchase any amount you want at any time and eliminate those end-of-the-month bills. This varies from postpaid, when the company bills you at the end of each month based on how much power you use.
How Does Prepaid Electricity Work?
The system is pretty simple. It just requires a special meter in your home, which, like postpaid, measures the amount of electricity used in kWh. However, it also has a running credit balance that decreases as you use electricity.
LED lights on the left side of the meter flash red when power is being used. The faster it flashes, the more watts are being used. There is another LED light on the right side of the meter that helps you monitor your credit balance. When it’s green, you have sufficient credit. However, it turns red when your balance drops below a certain threshold.
If that red light starts flashing, that is a warning that you should top it up soon so your power does not shut off. A beeping alarm will also indicate a shut-off will happen soon.
Keep your credits topped up to avoid power interruptions. To top up your credit balance, you can buy tokens or vouchers at supermarkets or convenience stores. Alternatively, buying credit is easy using the Home+ app’s secure online payments, which are processed in less than a minute. So, if your power is off, it can quickly be restored.
What Are the Benefits of Prepaid Electricity?
Gain Control Over Your Energy Use
The best benefit of prepaid power is becoming more aware of your energy use. This makes it even easier to find ways to save electricity at home. Studies in Cape Town showed that when people made the switch, their usage was lowered by an average of 12%.
Save Money
You have more control over your energy usage, allowing you to reduce your consumption, which can significantly lower your monthly bills. Users reduce their energy use by an average of 12%, lowering their monthly expenses accordingly.
Another great way to lower or eliminate your monthly bills is to invest in an EcoFlow Solar Generator like the EcoFlow DELTA Pro + 400W Solar Panel, which you can use for household power. You can even go off-grid completely and not have to worry about Eskom’s load-shedding, always having energy when you need it.
Eliminate Municipal Service Charges
Since these meters eliminate the need for meter readings, network charges, and other billing-related expenditures, you save additional money by eliminating service fees.
Proactive Customer Notification
In addition to the red and blinking lights on the meter to tell you that your credit is running low, Eskom will also send SMS and email reminders to notify you to top up your credit to help avoid interruptions.
Better Safety and Response
Since the meters allow real-time outage detection, your municipality can respond faster when issues cause unintended outages, like when accidents damage the lines. This helps ensure a more reliable electrical supply, improving safety for those relying on the grid.
Protection From Theft and Fraud
Pre-paid meters come with anti-tampering technology that will report malfunctions and detect if someone is bypassing the meter. This will help ensure no one can steal your power and you only pay for what you use.
Are There Any Disadvantages of Prepaid Electricity?
Risk of Disconnection
You need to monitor your usage carefully to avoid the risk of disconnection. This could be particularly problematic if you go away on a trip and come back to find your refrigerated and frozen food has gone bad because the power went out while you were away.
To alleviate the risk of disconnection, consider an EcoFlow Portable Power Station like the EcoFlow DELTA Series. The EcoFlow DELTA 2 Max and EcoFlow DELTA Pro models can power the majority of household items without connection to the main grid.
Inconvenience of Recharging
Some people find the need to recharge inconvenient, especially if they forget about topping it up and experience power interruptions.
No Emergency Credit
If you find yourself in a temporarily difficult financial situation, you don’t get the benefit of waiting for your bill to arrive or being late (with penalties) on your bills.
Potential For Price Manipulation or Higher Tariffs
Purchasing prepaid power tokens from vendors could potentially expose you to price manipulation, where they charge you more than they should. Use caution and only buy from reputable suppliers.
Sometimes, you may pay a higher tariff for your prepaid, so check your local rates before deciding to switch.
Your Account Can Be Blocked From Top-ups If You Owe Your Municipality
If you do not pay your municipal account on time, your meter will automatically be blocked. You won’t be able to recharge it until it is unblocked.
To unblock your account, pay your municipal account up to date. However, unblocking it could take up to 24 hours, so keeping your municipal account paid is important.
Where To Buy Prepaid Electricity in South Africa
Super Markets and Convenience Stores
Most supermarkets and convenience stores, such as those found at petrol stations, sell prepaid power vouchers or tokens. To make a purchase, you need only your meter number. This is a great option for those wanting to pay by cash.
Home+ App
The Home+ app is a convenient option for those who want to pay online from the comfort of their own homes. The best part is that you can do this 24/7. So, if your power shuts off after the stores close for the night, you can still top it up in less than a minute and get your power back online.
Frequently Asked Questions
Prepaid meters eliminate service fees and allow you better control over how much energy you use, which could save you significant money. However, they do require you to be proactive in monitoring your power usage and budget accordingly.
Final Thoughts
Prepaid electricity can be a good money-saving option by allowing consumers to take more control over how much power they use. It could save you additional money since it eliminates service fees associated with billing and meter readings. Just be cautious and check what tariffs are offered in your area, buy your credits using the Home+ app or reputable vendors to avoid any potential price gouging, and keep an eye on your credit balance to avoid service interruptions.
If you want to eliminate your bills altogether, consider purchasing an EcoFlow Solar Generator, providing complete energy independence.