As one of the biggest names in the industry, if you’re shopping for an energy supplier in a deregulated market, you’re likely to come across Direct Energy.
Direct Energy was founded in Toronto in 1986 but is now a subsidiary of international giant NRG Energy and is based in Houston. The company claims to supply nearly 4 million residential and business customers with electricity, natural gas and home efficiency services. It currently operates as an energy supplier in several deregulated markets across the eastern US and Alberta, Canada.
Deregulated energy markets result when utilities and other energy producers opt to make the energy they generate available on a wholesale energy market. Suppliers buy off the market and resell to you at retail rates. This all happens on paper via contracts and financial transactions — local utilities still physically generate and deliver energy to people within their geographical footprint, but who those people pay for that energy is now up to them.
We’ll help you find the best electricity rates in your area
with our partner Choose Energy
Direct Energy offers a wide variety of different fixed price contracts for terms as short as month-to-month all the way up to five years. It’s also possible to sign up for a green energy plan in which the company will offset up to 100% of your energy consumption with renewable energy certificates that are tied to energy produced by a sustainable source like wind, solar or hydropower.
The company also offers other novel incentives, like plans that include free energy on nights or weekends (or both), or an Amazon Prime subscription.
We’ll help you find the best electricity rates in your area
with our partner Choose Energy
Direct Energy is among the largest and most financially stable of an emerging crop of energy suppliers in deregulated markets, thanks to its ties to NRG. That said, it has a “D” rating with the Better Business Bureau backed up by dozens of recent one-star reviews, many of which seem to relate to billing issues. We don’t place a lot of stock in online reviews, but there seems to be a clear and consistent pattern of problems. As always, before entering into any agreement, be sure to do your own research and due diligence, and don’t be afraid to ask sales representatives what the company has done to address all the problems you’ve read about online.
Operates over a large geography with a strong corporate foundation Offers a number of renewable energy plans Offers a wide range of contract terms Incentives include free nights, weekends and an Amazon Prime subscription Also sells home repair and maintenance plans Concerning reputation and reviews online Look out for late payment fees Options can be difficult to navigate on the website The source of energy for RECs not disclosed