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Prepaid consumers pay more for the same service than post paid consumers.
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| False – Because the prepaid member does not pose a credit risk to the provider, there is no need to charge a premium for his service. In fact, service providers may actually experience a reduction in customer service, billing and collection costs associated with the prepaid consumer. |
Prepaid consumers have more requirements placed on them at the time of enrollment.
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| False – A simple, less costly enrollment process results from no deposit being required of the consumer. Since customers pays for energy as it is used, deposits are a thing of the past eliminating the out-of-pocket cost for the consumer and the costs of tracking and interest payments for the electric service provider. |
Prepaid unfairly discriminates against low income and credit challenged consumers.
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| False – The Prepaid option should never be used as a punishment or penalty towards consumers for not paying their bill. It should be offered to all consumers as an alternative payment solution and the consumer should always have the opportunity to return to the traditional billing option. |
Prepaid consumers will need to be disconnected more frequently than those under the traditional billing model.
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| False – Because consumers are more aware of their consumption which, in turn, triggers conservation, they can actually reduce their overall cost of electricity which causes a decrease in total payments and a subsequent decrease in disconnections. |
Prepaid reduces customer satisfaction
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| False – Consumer satisfaction is increased due to increased control of costs. |
