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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
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!
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)
$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
.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?
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
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 a question about a plan or need help placing an order?
Call us: 1-855-461-1926
Representatives available 24/7
