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Average Billing

Simplify your budget and even out your energy bills by enrolling in our average billing program. Keep reading to learn more.

How To Calculate Your Average Bill
Average Billing with Direct Energy

Why Enroll in Average Billing?

When you receive a consistent bill from Direct Energy every month, it brings peace of mind for you and your budget. Plus, you can enroll in average billing at no cost to you!

Average Billing with Direct Energy

The chart above shows how the typical energy bill can fluctuate from month to month, especially during periods of extreme weather. Average billing smooths out the peaks and valleys of your energy bill costs, making budgeting each month that much easier.

Still unsure how average billing works? Just follow our example below to see how average billing can help you.

Here's an Example That's Easy to Follow

These example charges can be found on your monthly electric bill.

How We Calculate Your Average Bill: An Example

If you've been a Direct Energy customer for at least 12 months, we'll use the following steps to calculate your average bill:

Please note: the figures displayed in this example are for illustration purposes only. Your average bill amount may be different based on your energy consumption, TDU charges, and energy rates.

For this example, let's assume the sum of your last 12 months of bills has the following charges.

Annual Energy Usage
12,000 kwh
Unpaid Balance (if applicable)
Energy Rate Per kWh
TDU Charges (both fixed and usage-based)
$5.00 per month
Taxes and Recurring Fees
$10.00 per month ($120.00 per year)

Multiply your Energy Usage for the year by your Energy Rate Per kWh.

Annual Energy Usage
12,000 kwh
Energy Rate Per kWh

12,000 kWh x $0.10 = $1200.00

This results in your Total Annual Energy Charge.

Add your Unpaid Balance (if applicable) and Taxes and Recurring Fees to your Total Annual Energy Charge.

Unpaid Balance
Taxes and Recurring Fees
Annual Energy Charge

$1200.00 + $50.00 + $120.00 = $1370.00

Now you have the amount for your Total Annual Bill

Take your Total Annual Bill Amount and divide by 12 to calculate your Average Bill.

Total Annual Bill

$1370.00 ÷ 12 = $114.15

In this example, if your home had one year's worth of energy use at 1000 kWh per month, your average bill would be approximately $114.15 per month


If you've not been a Direct Energy customer for 12 months, you can still benefit from average billing. We'll just ask your utility company to provide historical usage for your address from the last 12 months.

Ready to Get Started?

Just start a chat below, or give us a call at 1-855-461-1926 to speak with a friendly customer care agent.

Frequently Asked Questions

  • You are current on payments (existing customers)
  • All your subsequent bills must be paid on time
  • You are not currently enrolled in a Payment Extension or Deferred Payment Plan
  • You are currently not enrolled in Summary Billing
  • You agree to have all active premises on your account enrolled in the Average Billing Plan
Not necessarily. The amount could differ slightly from month to month based on taxes, pass-through charges, and other fees. Your usage is reviewed monthly and adjustments made to the installment amount based on your actual usage.

Your monthly bill is a rolling average of your electric usage for the previous 11 months plus your usage from the current month. That amount is divided by 12, taking into consideration the current month's rate with a slight adjustment for outside factors.

Average Accumulated Balance or "wash up" is the difference between what you have paid and what you have used. It may be a balance due or a credit owed. A wash up is done once a year or when the Accumulated Average Balance hits $500+ (whichever comes first). They are also done when the account or Average Billing is cancelled.
If you have paid for more energy than you used, we owe you a credit. It will be subtracted from the balance due on the account (anything over the balance will be refunded to you).

If you have paid for less energy than you used, the amount you owe will be added to your total balance due in a monthly bill. If cancelling, you will be responsible to pay both the Accumulated Average Balance as well as your balance in a final bill.

Option: If it is an annual wash up, you may have it smoothed into your plan IF the balance is less than $500. Anything over must be paid in full or you can request a Deferred Payment Plan. This will cancel your Average Billing.

Have a question about a plan or need help placing an order?

Call us: 1-855-461-1926

Hours: 7:30am-8:00pm CT Monday-Saturday
Closed Sunday

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