What is an Energy or Generation Charge?

An energy or generation charge is what Direct Energy charges you for your electricity usage based on the energy consumed in terms of kilowatt-hours (kWh) in a given billing cycle and the rate for that energy. This charge is calculated by multiplying the number of kWh consumed during a billing cycle by your rate for energy in terms of cents per kWh.

For example, if you used 1,000 kWh during a billing cycle, and you were signed up with a fixed-rate plan at 10.0 cents per kWh, your energy charge would be $100.00: 1,000 kWh * 10.0 cents per kWh = $100.00.

Please be advised that the number of kWh you use in a billing cycle is determined by the utility company for your area based upon them reading your meter, not Direct Energy.

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