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The Effect of Prepayment on Energy Usage

Michael Ozog, Ph.D. Integral Analytics, Inc.


In the U.S. and abroad, data has shown a linkage between prepayment of energy bills and a conservation effect, with significant usage reductions of 5 to 15% found when customers switched from post-payment to prepayment. Using Oklahoma Electric Cooperative’s consumer data from MyUsage Prepay within a regression model, this research determined that enrollment in prepay results in a significant reduction in energy usage of on average 11%.


Source: DEFG Prepay Energy Working Group