Prepaid electricity popularity growing in U.S.

A national survey of consumers revealed that the popularity of the prepaid electricity option is growing in the United States. The survey conducted by DEFG LLC, a management consulting firm specializing in the energy sector, said the interest in prepaid electricity is especially strong among younger adults, renters and men in general.

DEFG noted 38 percent of the 1,000 consumers surveyed in late 2012 by the company's Prepay Energy Working Group were interested in the technology. The survey respondents said the top reasons for choosing prepaid electricity service were to:

• Reduce energy consumption and more closely monitor usage (30 percent)
• Increase control over energy costs and budgets (28 percent)
• Pay for energy as it is used (24 percent)
• Eliminate "surprises" (23 percent)

DEFG said the 2012 survey responses were consistent with its 2010 national survey, but with a substantial increase in the number of respondents who cited the reduce energy consumption reason for adopting prepaid electricity services; only 17 percent cited that reason in the 2010 survey.

DEFG Chief Executive Officer Jamie Wimberly said, "Prepaid electricity is currently gaining momentum in the U.S. as a 'smart' offering where usage and account balance information can be shared with customers in near real-time via a feedback loop – the service can serve as a consumer platform for both energy and budget management.

"Consumers are seeking more relevant and timely information delivered through preferred communication channels. Prepaid electricity is clearly compatible with current behavioral trends and the future of customer transactions in the energy space."

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