Average Billing helps you have a more predictable energy budget. You pay an averaged amount every month instead of paying high amounts during high-usage months and paying low amounts in low-usage months.
Before Average Billing
After Average Billing
The above charts are an example for illustration purposes only
Avoid the bill spikes that typically come with times of higher usage.
Breathe easier because your bills won't increase or decrease dramatically.
With less bill fluctuation each month, budgeting is that much easier.
These example charges can be found on your monthly electric bill.
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.
This results in your Total Annual Energy Charge.
Now you have the amount for your Total Annual Bill
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.
All amounts are estimates, as other discounts, fees and non-commodity charges are not included.
The deferred balance amount is the cumulative difference between your monthly Average Billing amount and what you would owe if you were not signed up for Average Billing. The deferred balance amount can be found on your monthly bill. If the bill amount is positive, 1/12 will be added to your bill. If the bill amount is negative, 1/12 will be subtracted from your bill. The deferred balance must be paid in full if you cancel Average Billing or change electricity providers.
If you remain with Direct Energy, your accumulated deferred balance will become due in full on your next invoice or payment arrangements can be made. If you leave Direct Energy, your accumulated deferred balance will become due in full immediately. If you have a credit due, that amount will be applied to your final bill with any remaining amount refunded afterward.
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.
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.
You can use the same payment options for your electricity bill payment as you would with regular billing. Here are the different payment methods:
You may be eligible to have your deferred balance carried over to your new address. Direct Energy will notify you if you are eligible at the time you request a transfer of service.
Any credit balance will be applied to your final bill or refunded to you; any outstanding deferred balance will be due at that time.