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Smooth out the highs and lows of your bills with Average Billing.

Pay a more predictable bill amount each month, no matter how much energy you use during the hot summer and cold winter months.

Learn how it works

What is Average Billing?

Average Billing is a free budgeting tool that can help even out bill amounts by averaging usage charges throughout the year instead of paying the highs and lows of seasonal bills. Sometimes you’ll pay more or less than what you actually use and that becomes your deferred balance, which is spread out over your future bills.

While Average Billing doesn't reduce your total annual charges, it makes your bills more predictable, helping you budget better.

How is the monthly Average Billing amount 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.

Average Billing is an easy way to manage your monthly energy budget.

Sign up for Average Billing and smooth out seasonal high and low bills by paying a rolling average amount all year.

Sign up

How would Average Billing help you?

Predictable payments

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

Stress-free bills

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

Easier budgeting

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

 

 

Example of how Average Billing works

*For illustration purposes only

Before Average Billing

After Average Billing

How is the deferred balance calculated?

Example of a customer who has a deferred balance owing for the month

5-Year Cashback Plus Dual Fuel customer
Natural gas charges $61.93
Electricity charges  $44.39
Distribution and government charges (Non-Direct Energy charges) $215.19
Total current charges $321.51
Current Average Billing amount $252.00

Since the Average Monthly Billing amount is lower than the actual current usage charges, the $69.51 difference will be added to their deferred balance. They will also have a higher rolling average on the next bill. 

Example of a customer who has a deferred balance credit for the month

5-Year Cashback Plus Dual Fuel customer
Natural gas charges $22.23
Electricity charges  $28.22
Distribution and government charges (Non-Direct Energy charges) $117.40
Total current charges $167.85
Current Average Billing amount $241.00

Since the Average Monthly Billing amount is higher than the actual current usage charges, the $73.15 difference will lower their deferred balance. They will also have a lower rolling average on the next bill. 

Frequently asked questions

Show all answers

The deferred balance is the accumulative difference between your determined Average Billing amount and what you would normally owe if you were not on our Average Billing program. You can find the deferred balance amount on your monthly bills. If the bill amount is negative, we will subtract 1/12 from your bill. If the bill amount is positive, we will add 1/12 to your bill. 

If you're new to Average Billing, the deferred balance will begin on the second month. If you decide to cancel your Average Billing or change energy retailers, you will need to pay your deferred balance in full. 

Your monthly bill will show the Average Billing amount that is due that month. In addition, you'll see your actual usage, the current price, and your deferred balance. As mentioned above, the deferred balance might be a credit or an amount owed. 

With regular billing, your energy bill goes up during high-usage months and down in low-usage months. Instead, Average Billing allows you to pay a rolling average monthly amount, spreading your energy costs throughout the year and making it more manageable. Watch this video to learn more about Average Billing.

This is how we calculate your Average Billing amount:

  1. We add up your monthly bills for 12 months (or the number of monthly bills available, if fewer than 12).
  2. We then take that total and divide the amount by 12 or by the total months available for your service address (if fewer than 12).
  3. Finally, we add or subtract 1/12 of your deferred balance, which is the cumulative difference between your monthly Average Billing amount and your actual usage charges.

And don't worry, with Average Billing, you can still sign up for Auto Pay through your bank or make payments through your Online Account, mail, or phone. You can read more about your payment options here.

The amount you pay each month will not be the same. It can vary slightly based on fluctuations in your energy usage.

While your monthly energy bills won't decrease, it'll be more evenly distributed throughout the year, which means more balanced monthly payments for you.

If you've selected our Green Option, those monthly charges will remain the same each month and are not included in the Average Billing calculation.

Please call us if you'd like to remove Average Billing from your account. Unfortunately, we cannot make those adjustments through your Online Account at this time. If you decide to cancel your Average Billing or change energy retailers, we will apply any credit balance to your next bill or refund it. However, if you have an outstanding deferred balance, you'll have to pay it at this time.

Average Billing would only start on your second month with us as we calculate your Average Billing amount based on the average of your Direct Energy bills.

You might be able to transfer your deferred balance over to your new address. We can discuss this when you let us know you're moving and request a service transfer. 

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

Call us: 1-866-374-6299

Have a question or need help placing an order with Direct Energy Regulated Services?

Call us: 1-866-420-3174

Customer Service Hours: 7:00am - 9:00pm MST (Monday-Friday), 8:00am - 4:30pm MST (Saturday), Closed Sundays