Dive Brief:

• Kansas state regulators have approved a plan by Westar Energy to pilot prepaid electricity billing, which would let the utility's Kansas customers to pay their bills ahead of consumption.
• The pilot scheme is to be open to 1,000 Westar customers who have smart meters installed in their homes. A quarter of these can be customers with bills in arrears, while the others are expected to be a mix of new and existing customers. 
• Monthly service charges and per-kilowatt electricity consumption will be averaged to a daily charge based on average rates, while customers will also pay a $4 monthly enrollment fee. If money in a prepay account runs out, reconnection costs only $5. There is no disconnection fee. Normally, disconnection costs $15, while reconnection costs $20.

Dive Insight:

The prepaid option is expected to be popular with customers who move a lot or live in Kansas temporarily, such as college student. The low disconnection and reconnection fees, the minimal paperwork and lack of a security deposit are appealing traits for these types of customers.

Consumers already “compare Westar to other companies’ products and services such as prepaid cell phones," said Westar spokeswoman Gina Penzig. "We want to meet those expectations and give our customers more product and service options that fit their lifestyle.”