US energy retailer Direct Energy has launched a new Fixed Energy Plus programme to bring more bill transparency for business customers in Texas.
The Fixed Energy Plus solution offers a single-price electricity supply rate for the term of the contract and an at-cost settlement of demand-based regulated charges.
This structure reduces a customer’s exposure to the risk of price volatility in the energy market, while creating opportunity to maximise demand efficiencies.
“Our customers will be the first in the industry to see an itemised view of their bill with our new Fixed Energy Plus solution,” said John Schultz president, Centrica North America and Direct Energy Business.
“The billing…clearly shows regulated monthly demand charges absent any supplier markup, and offers our customers a clear path to managing a sizable portion of their annual energy bill. This will bring stability and transparency to our billing process, so customers can better understand and take control of their energy usage.”
The new billing program uses a two-part pricing structure that separates the fixed energy component from a pass-through of demand-based regulated charges.
Pass-through demand-based charges are made up of capacity and transmission charges. Each of these charges is now displayed on the customer’s bill in a transparent, itemised manner and linked to the customer’s peak load obligation.
This billing method provides customers with a simple way to confirm the exact amount of their bill related to the specific charges that are based on peak consumption versus their total electricity consumption.
In addition, Direct Energy will automatically enrol customers on this program to receive peak load notification emails, which alert them to opportunities to manage their peak load obligation.
Using this information, customers who can reduce their consumption on a few days of the year can dramatically lower their annual energy bill.