Average Monthly Billing

How we calculate your Average Monthly 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.}

What is Average Monthly Billing?

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

How is the Average Monthly Billing amount calculated?

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 Monthly Billing amount and what you would owe if you were not signed up for Average Monthly 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.

What are my payment options for Average Monthly Billing?

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.

What happens to my deferred balance when I transfer my service?

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.

What happens if I close my Direct Energy account?

Any credit balance will be applied to your final bill or refunded to you; any outstanding deferred balance will be due at that time.

August breakdown
Actual bill minus Average Monthly Billing	$130.00 - $114.15 = $15.85
Difference divided by 12	$15.85 ÷ 12 = $1.32
Average Monthly Billing plus new difference	$114.15 + $1.32 = $115.47

September breakdown
Actual bill minus Average Monthly Billing	$95.00 - $115.47 = -$19.15
Difference divided by 12	$19.15 ÷ 12 = $1.60
Average Monthly Billing plus new difference	$115.47 + $1.60 = $113.87

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Pick your service location

Choose Direct Energy

A smarter, safer home

25 energy-efficient tips for lower electricity costs

Download the app

Enjoy a more predictable budget with Average Monthly Billing

What is Average Monthly Billing?

Example of how Average Monthly Billing works

Before Average Monthly Billing

After Average Monthly Billing

How would Average Monthly Billing help you?

Predictable payments

Stress-free bills

Easier budgeting

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

How is my monthly bill calculated?

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

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

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

How we calculate your Average Monthly Bill: an example

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

Multiply your energy usage for the year by your energy rate per kWh.

12,000 kWh x $0.10 = $1,200.00

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.

$50.00 + $120.00 + $1,200.00 = $1,370.00

Now you have the amount for your total annual bill

Take your total annual bill amount and divide by 12 to calculate your average monthly bill.

In this example, if your home had one year's worth of energy use at 1,000 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 Monthly Billing. We'll just ask your utility company to provide historical usage for your address from the last 12 months.

Your Average Monthly Billing amount can fluctuate from month to month as it is recalculated on your most recent usage history.

Total annual bill

$1,370.00

Total annual bill divided by 12 months

$1370.00 ÷ 12 = $114.15

August bill example:

September bill example:

Sign up for Average Monthly Billing and get a more predictable monthly cost, so you can easily plan your budget for groceries and everything else.