Can a daily electricity bill unlock energy efficiency? Evidence from Texas

Abstract This study examines the energy efficiency implications of a daily billed energy service, commonly known as ‘prepaid’ electricity, which is used by a growing percentage of residential customers in the competitive Texas electricity market. Our empirical analysis results suggest that this service could save 9.6% of average daily energy consumption, net of the effect of any disconnections. This quantitative study demonstrates that energy efficiency from prepaid energy products can extend to competitive marketplaces.