How is the Average Billing amount calculated?

  • First, Direct Energy adds your current bill amount to the previous 11 months' bill amounts for your service address.
  • Then, that total amount will be divided by 12 (or by the total months available for your service address).
  • Finally, Direct Energy adds or subtracts 1/12 of your Deferred Balance, which is the cumulative difference between your monthly average billing amount and what you would owe if you were not signed up for Average Billing.

You can learn how Direct Energy calculates average billing from this example.

If there is no previous billing in your name at the service address, or you do not have 11 months bill amounts at the service address, Direct Energy will take the previous usage at that service address and apply your current price to calculate your average monthly amount.

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