What is an Energy or Generation Charge?

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

For example, if you're signed up on a fixed-rate plan at 10.0 cents per kWh and you use 1,000 kWh during a billing cycle, your energy charge would be $100.00: 1,000 kWh x 10.0 cents per kWh = $100.00.

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

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