Here's why more households are switching to prepaid electricity

More and more households are switching to prepaid electricity in an attempt to save on electricity costs, and better manage and monitor their daily usage. The benefits of this option are far-reaching and it has a wide appeal among everyday homeowners, landlords and investors, and trustees in a sectional title scheme.

Speaking to Nicolle De Lucia from De Lucia Group, she explains how prepaid electricity works and why more people are choosing this option.

"When households switch to prepaid electricity, they will first need to install a prepaid electricity meter which calculates the amount of electricity used based on consumption - this is measured in KWH (Kilowatt Per Hour) where one Kilowatt equals 1000 watts.

"The meter balance decreases as electricity is consumed by the household - this can be monitored by an LED light on the meter which flashes when electricity is being used up."

Considering the different types of property stakeholders that are opting for prepaid electricity, De Lucia says there are four big advantages that are motivating them to make the switch.

1. Easy Monitoring

The most obvious advantage, says De Lucia, is that prepaid electricity enables you to monitor your consumption through a digital readout and light indicator on the meter - this will tell you how much electricity you are using in real time, how quickly you are using it, and when to recharge.

"In this way, you no longer have to worry about receiving an unexpected, exaggerated or incorrect electricity bill from the municipality."

2. Proactive Management

She explains that being able to monitor the amount of electricity you use opens up the opportunity to better understand and manage it each month.

"You can do this by identifying which appliances use the most electricity, what your average daily use is and how the seasons or daily weather patterns affect your use."

"Once you have this information, you can take calculated steps to consume electricity more wisely in your home."

3. Save Money

"When you begin monitoring and managing your electricity usage, you will be able to save money and budget effectively.

"This also means you will begin making better decisions by using your appliances in an efficient way in order to meet your monthly budget requirements."

De Lucia goes on to explain that a prepaid meter has another cost-saving measure, ie, you will no longer be required to pay a service charge which includes meter reading, network charges, and billing and meter capital expenditure.

"This charge is only payable on conventional metering."

Investors and Landlords

Prepaid electricity is especially important for investors and landlords, says De Lucia, as it allows them to monitor their occupants' consumption via the internet and check for tampering and bypassing of meters.

"This ensures that they are more protected, suffer fewer losses and have more control over electricity usage in their homes."

She goes on to explain that trustees are another group who benefit significantly.

"Prepaid electricity helps improve cash flow in a sectional-title scheme as it is paid upfront by the owners or tenants before the bill arrives from the municipality.

"This reduces the risk of non-payment, which could also extend to the municipality terminating services to the scheme if bills go unpaid."

De Lucia Group - Prepaid Electricity Services

"Having identified the significant advantages of prepaid electricity, we at De Lucia Group have taken the necessary steps to implement this service for our clients."

She explains that since implementation, the group has noticed a spike in the number of people switching to prepaid electricity, and because of this, they will continue to supply this demand in an innovative and proactive manner.

"Our prepaid service is for everyday homeowners, but also extends to landlords, investors and trustees in a sectional-title scheme."

In ending, De Lucia says the group has gained expertise of the local authorities and the National Energy Regulator of South Africa (NERSA).

"Through this, we have developed a comprehensive service offering to include converting conventional meters to pre-paid meters."

From easy monitoring and effective management to cost savings, prepaid electricity is a smart way to run a household and sectional-title scheme. To find out more, contact our helpful agents from De Lucia Group today.