Direct Energy

Direct Energy LP is a North American retailer of energy and energy services. The company was founded in Toronto in 1986[3] and now has more than four million customers in Canada and the United States. Direct Energy is a subsidiary of NRG Energy.

History

Direct Energy was founded in Toronto in 1986, as a competitive energy retailer. In 2000, the company was acquired by Centrica, the UK-based parent of British energy retailer British Gas.

In 2010, Direct Energy acquired Clockwork Home Services making Direct Energy the largest energy and home services retailer in North America. Clockwork has three brands: One Hour Air Conditioning & Heating, Benjamin Franklin Plumbing and Mister Sparky, which specialize in plumbing, electrical and air-conditioning and heating and services,[4] all of which have earned the Diamond Certified Award for excellent service.[5]

Products and services

Direct Energy’s U.S. operations span 46 states and the District of Columbia including Texas, Ohio, Michigan, Illinois, Pennsylvania, California, Connecticut, Maryland, Rhode Island, Maine, New York, New Jersey, Delaware, Massachusetts, Florida, North Carolina, Kentucky, Indiana, Alabama, Oklahoma and Virginia. While not providing services to residential customers and businesses in Oklahoma, Direct Energy has established an Operations Center in Tulsa. In Canada, Direct Energy has operations in Ontario, Alberta, British Columbia, Manitoba, Quebec, Saskatchewan, Nova Scotia, Prince Edward Island, New Brunswick, and Newfoundland and Labrador.

For residential customers and small business, Direct Energy offers fixed price electricity and gas plans, as an alternative to the local utility or in competition with the local competitive energy providers. In Texas, Direct Energy offers a pre-paid electricity plan, Power-To-Go.[16] In Ontario, Direct Energy previously rented water heaters to around 600,000 residential homeowners;[17] this division was sold off in 2014 and subsequently rebranded as Enercare.[18] Through its services division, Direct Energy installs and services heating, ventilating and air conditioning equipment. It also can perform energy retrofits and other energy management projects at larger facilities. Direct Energy’s Home and Business Services division employs over 1,400 technicians providing residential customers with heating, ventilation and air conditioner (HVAC), plumbing, home improvements, water heater and electrical appliance services.[19]

Direct Energy is a regulated gas and electricity provider in Alberta, operating under the Direct Energy Regulated Services brand. It also offers deregulated service in the Province, operating as Direct Energy.

In South Texas, Direct Energy operates as CPL Retail Energy and CPL Business.

In West Texas, Direct Energy operates as WTU Retail Energy and WTU Business.

In Texas, additional brands of Direct Energy are First Choice Power, Bounce Energy.

Controversies

May 2004 - Direct Energy was fined $157,500 CAD in 2003 after investigators discovered 25 of their sales agents were forging contracts to trap Ontario and US citizens into long-term energy contracts.[21] After the forgeries committed by sales employees were discovered, Direct Energy president Paul Massara reported that "action [was taken to] deal with these issues and we've moved on a long way since that time."

May 2009 - Some Direct Energy sales people failed to make it clear to customers that they were signing up for unregulated energy rates. In order to prevent this issue from continuing, Direct Energy worked with the Service Alberta to train staff and implement practices that would prevent sales people from purposefully or accidentally misleading citizens about energy plans. The company was fined over $5,000 in penalties for the damages caused by the negligence. The Ontario government has since passed a bill that would require energy retailers to follow up on each contract sold to ensure the customer had willingly made the purchase which should allow energy companies to ensure that customers were not swayed by unethical sales pitches.[22]

In November 2012, Canada's Competition Bureau began looking into whether water heater rental companies were engaging in anti-competitive practices. Direct Energy, Reliance Home Comfort, and other water heater suppliers allegedly created contracts with high exit fees, long term contracts, and high buyout charges to make it difficult for customers to switch suppliers.[23] The division of Direct Energy in question was subsequently sold and rebranded as Enercare.[18]

March 2014 - An Alberta judge has certified a class action lawsuit against Direct Energy alleging the company violated the Criminal Code and Canada's Interest Act. The lawsuit alleges Direct Energy's late payment penalties were effectively charging customers a 91 percent interest rate on late payments.[24] The class action is still in process.

Sales employee oversight

Water Heater Rental Contracts

Late Penalties

type	Limited partnership
foundation	1986 in Toronto, Ontario, Canada‡R1R‡‡R2R‡
industry	Electricity retail, gas distribution
hq location city	Houston, Texas
hq location country	United States
subsid	* Airtron * CPL Retail Energy * Direct Energy Business * First Choice Power * Home Warranty of America * WTU Retail Energy
parent	NRG Energy
homepage	http://www.directenergy.com

History

Products and services

Deregulation position

Controversies

See also

External links

References