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Enjoy a More Predictable Budget With Average Billing

We all crave balance in our lives, and with Average Billing, you get just that — a more predictable bill amount each month, no matter how much energy you use. You can relax, not having to worry about how much your bill will be, especially during the hot summer and cold winter months.

Or call us at 1-866-982-2159 to speak with a friendly customer care agent.

customer looking at average monthly bill on computer

What Is Average Billing?

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.

Example of How Average Billing Works

Before Average Billing

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After Average Billing

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The above charts are an example for illustration purposes only

How Would Average Billing Help You?

predictable payment

Predictable Payments

Avoid the bill spikes that typically come with times of higher usage.

stress free bill

Stress-Free Bills

Breathe easier because your bills won't increase or decrease dramatically.

easier budgeting

Easier Budgeting

With less bill fluctuation each month, budgeting is that much easier.

Average Billing will help you even out your energy bill and avoid price spikes during hot summer and cold winter months.

Log in to Enroll Now

Or call us at 1-866-982-2159 to speak with a friendly customer care agent.

How Is My Monthly Bill Calculated?

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We add up your monthly bills for 12 months, if available.

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We divide that sum by 12 or by the total months available for your service address.

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Finally, we add or subtract 1/12 of your deferred balance.

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)
$50.00
Energy Rate Per kWh
$0.10
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
$0.10

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
$50.00
Taxes and Recurring Fees
$120.00
Annual Energy Charge
$1200.00

$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

$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

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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.

Your Average Bill amount can fluctuate from month to month as it is recalculated on your most recent usage history. Each month, the Deferred Balance can be either a credit or a debit. If the usage that month was higher than the 12-month Average Bill, the difference will be added to the total deferred balance. If the usage that month was lower than the 12-month average, the difference will actually be credited and the total deferred balance will drop.

Total Annual Bill
$1370.00

$1370.00 ÷ 12 = $114.15

August bill example: In August, you receive a bill for $130.00, which is $15.85 more than the average. The $15.85 amount divided by 12 changes your average bill amount to $115.47.

$130.00 - $114.15 = $15.85

$15.85 ÷ 12 = $1.32

$114.15 + $1.32 = $115.47

September bill example: Your September bill comes in at $95.00, which is $19.15 lower than the average and thus subtracted from the deferred balance. The $19.15 credit divided by 12 changes the average bill amount to $113.87.

$95.00 - $115.47 = -$19.15

$19.15 ÷ 12 = $1.60

$115.47 - $1.60 = $113.87

All amounts are estimates, as other discounts, fees and non-commodity charges are not included.

Ready To Get Started?

Log in to enroll now or give us a call at 1-855-461-1926 to speak with a friendly customer care agent.

What Is Deferred Balance

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.

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What Happens If I Cancel Average Billing?

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.

Sign up for Average Billing to get a more predictable monthly cost, so it will be easier to plan and budget your spendings for groceries and everything else.

Log in to Enroll Now

Or call us at 1-866-982-2159 to speak with a friendly customer care agent.

Frequently Asked Questions

Average Billing allows you to pay an evened-out amount every month instead of receiving fluctuating month-to-month bills.

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 can sign up for AutoPay to have the amount automatically paid each month.
  • You can pay through your Online Account Manager.
  • Call our automated phone system to pay your bill at your convenience, 24/7/365 at 1-888-305-3828.
  • By mail: Write your check or money order payable to Direct Energy. Be sure and write your account number on your check or money order.
    • Direct Energy
    • P.O. Box 660896
    • Dallas, TX 75266
  • Pay in Person: There are a number of places where you can pay your bill in person. Find the payment station near you. We accept credit/debit cards and checks.

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.

Have any questions about Average Billing?

Call us: 1-866-982-2159

We're here to support you 24/7

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

Call us: 1-855-461-1926

We're here to support you 24/7

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