AT&T Envisions Great Future For Prepay Electric Plans

Written By: Energy Guru - Feb• 03•14

electricity meterIn previous years prepaid electricity was not common among Americans despite many subscribing to prepaid cellular service.  However, the concept is beginning to gain popularity, and large cellular companies such as AT&T are getting in on the action.  This is following announcements by the company that they will be the sole provider of utility payment solutions for Paygo.

AT&T views the increase in prepaid cellular customers as an indication that the consumer is changing and may be ready to consider prepaid electricity as well.  Regulators and utility companies alike are also interested in pursuing prepaid electricity program.  This was confirmed in a survey conducted by the cellular giant in whom it was revealed that a third of utility companies would implement prepaid electric plans if the cost to do so was low or didn’t cost them anything.

The survey also revealed that electric companies lose a lot of money to uncollectible bills.  However, AT&T estimates that if the companies were to implement prepaid electric plans, they would save a maximum of $15 million annually.  The prepaid program would also decrease the number of disconnection notices that utility companies send out.

Despite the encouraging results from the survey, for the prepay plans to be successful, certain issues will first need to be addressed.  For example, customers would need to be provided with real-time information of their usage, and if their service is disconnected, the utilities company will have to be able to carry out re-connection just as quickly.  The program will also need to exhibit certain similarities with prepaid cellular service such as the ability for customers to sign up and pay for their service on line.

Although many utility companies display an interest in implementing the prepay plan, very few are willing to take their first leap.  However, one company who is taking a risk with this program is a Michigan utility company called Consumers Energy.  The company already have a plan to test prepay services with 1,000 customers.

You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.