Texas’ deregulated energy market means around 85% of Lone Star state residents can choose their electricity provider.
Finding the most suitable one can be daunting — there are more than 130 electricity companies to choose from, each with dozens of differing products.
To help you out, we’re training the spotlight on one of those electricity companies: Direct Energy. Find out more about Direct Energy services with this guide.
What Is Direct Energy?
Direct Energy is one of the largest energy providers in North America, with more than 4 million residential and 240,000 business customers.
The company provides electricity, natural gas, and home protection plans to people and small businesses across multiple service areas, including:
- Texas
- Ohio
- New York
- Pennsylvania
Note though, that not every state supports all the services mentioned.
Direct Energy’s headquarters are in Houston, Texas, and its parent company is NRG Energy. NRG bought Direct Energy from Centrica PLC in a $3.63 billion deal in 2020.
In Which States Does Direct Energy Offer Electricity?
Direct Energy operates in all 50 states, the District of Columbia, plus four Canadian provinces. The Public Utility Commission of Texas (PUC or PUCT) has approved Direct Energy to operate as an energy company within its state borders.
In Which Texas Cities Does Direct Energy Offer Electricity?
Direct Energy offers electricity services in many Texas cities. Here are a few, but not all, of their service areas:
- Abilene
- Dallas
- Houston
- Fort Worth
- Grand Prairie
- Houston
- League City
- Pasadena
- Plano
- Sugar Land
- Waco
What Is the Difference Between Direct Energy Regulated Services (DERS) and Direct Energy?
In Alberta, Canada, Direct Energy has two separate versions of Direct Energy. The first is Direct Energy, and the second is Direct Energy Regulated Services, or DERS for short. Both are regulated, just differently.
Direct Energy can offer fixed-rate deals in Alberta. At the same time, DERS must comply with rules set by the Alberta Utilities Commission (AUC) to mirror fluctuating gas and electric market prices and conditions. DERS doesn’t offer fixed-rate deals in Alberta.
What Services Does Direct Energy Offer?
Direct Energy offers electricity services and natural gas supplies to eligible customers. Its home protection plans cover heating, cooling, appliances, and more.
In some service areas, Direct Energy counts full-service rental of appliances like water heaters, washers, and dryers among its offerings. The company also installs, repairs, and provides warranties for air conditioners and HVAC systems in certain areas.
Direct Energy Rates and Electricity Rates
The recent energy crisis has seen electricity, natural gas, and gasoline prices rise rapidly throughout 2022.The recent energy crisis has seen electricity, natural gas, and gasoline prices rise rapidly through most of 2022.
Many people have seen their energy bills rise dramatically, especially those on variable rate plans. If you’re worried about your electricity bills, please get in touch with your provider or account manager as soon as possible to discuss your options.
What Is the Best Direct Energy Plan for Electricity?
Texas residential customers need to contact Direct Energy’s customer support number to discuss current energy plans.
In Texas, Direct Energy’s website doesn’t show any energy plans to enquirers currently. Interested parties are advised to phone their customer support team.
Direct Energy’s customer support is open seven days a week, 7 a.m. to 10 p.m. CT.
Enter your ZIP Code and compare electricity rates
What Electricity Rates Does Direct Energy Offer Households?
Residential customers in Texas need to contact Direct Energy’s customer support number to talk about the company’s current electricity rates.
People can still find Direct Energy electricity plans on the Public Utility Commission of Texas’ PowertoChoose.org website. You may be asked to contact Direct Energy to finalize any deal.
On the Power to Choose website, you must first input your ZIP code to see if Direct Energy operates in your service area. Use filters on the left-side panel to find Direct Energy deals.
Pro tip: Our Power to Choose guide offers help on how to find and compare electricity deals between Direct Energy and many other electric companies.
Always check with your current electricity supplier if there are termination fees before switching suppliers. Be sure you understand your billing and your energy needs, too. We recommend that you’re clear about the following before looking to move electric companies:
Kilowatt-hour (kWh) prices and usage: Texas electric companies advertise prices in kilowatt-hours. Having a good grasp on how much electricity you use each month in kWhs and at what times can guide your decision about which electric company you choose to use.
Offers: Free electricity at weekends or evenings sounds tempting but ensure you can meet the terms and conditions. Does the timing suit your lifestyle? If you’re out all weekend, a free-weekend deal may not be for you. The same goes for minimum usage deals — failing to fulfill your minimum usage part of the bargain could lead to higher electricity rates being charged.
Renewable energy: Some electricity companies offer a certain percentage of renewable energy in their mix, others up to 100%.
Hidden fees: Look for utility fees, minimum usage fees, or other costs added to your bill.
Contract length: What are your plans and goals? A five-year deal may not fit if you’re planning to move or rent short-term. A reduced contract length may be a little more expensive per kWh but brings flexibility and can help avoid costly early termination fees.
What Direct Energy Business Plans Are Available?
Direct Energy business customers can currently see four electricity plans. The portfolio for small businesses numbers:
- Live Brighter 12: A fixed rate plan that locks in a price per kilowatt-hour used for 12 months.
- Live Brighter 36: This is a more extended version than the 12-month Live Brighter option and offers a lower kilowatt-hour price.
- Texas Green Power 24: Renewable energy is vital for many businesses looking to lower their carbon footprint. This two-year energy plan brings a fixed rate using renewable energy sources.
- Bright Choice: A variable-rate plan that runs from month to month, with the kilowatt-hour price changing at the end of each month. Prices can go up or down.
Please note: All information and prices are subject to change without notice due to ongoing energy market conditions.
Practical Information for Direct Energy Customers
Many households in Texas already count on Direct Energy as their energy provider. For example, the Live Brighter package may be familiar to some. Others may have signed up for the company’s variable rate, flexible, Power-to-Go plan.
Direct Energy offers a wide range of customer support services — here are a few basics.
Does Direct Energy Offer Online Accounts?
Residential and small business customers can set up an online account manager at Direct Energy. The company has designed a mobile app too.
Interested parties need their account number to get started. You can find the number in the top right corner of any previous electricity or natural gas bill.
People can pay their bills online at www.directenergy.com, monitor energy usage, alter billing schedules, and more. Existing customers can even receive refer-a-friend codes that bring them a financial reward for each person they refer to Direct Energy that signs a contract.
How Do I Know How Much Energy I’ve Been Using?
Many people wait for their electricity bill to arrive before considering their energy usage. Direct Energy’s online accounts allow customers to log in and drill down into electricity usage.
You can see daily, weekly, monthly, or yearly usage levels online. This information may identify why some people experience more expensive electricity bills at certain times.
Specific set-ups also provide insights into how HVAC systems or fridges can affect bills. Usage can be compared to the weather on chosen days. This information could be helpful for looking at air conditioner use or heating costs.
What Payment Options Does Direct Energy Accept?
Direct Energy accepts payments in many forms. Customers can pay through an online account using a credit or debit card or bank account, or make a one-time online payment on the company website.
Some prefer to pay through a bank account at the bank or call Direct Energy’s payment department. The company also offers payment by check through the mail, autopay, in person, via Alexa, and with the mobile wallet in its app.
People struggling with their bills may get help from the company with deferred payment plans and payment extensions. You must contact Direct Energy to get an agreement in place for either of these options.
Will Direct Energy Plans Include a Deposit?
Direct Energy’s fixed rate electricity plans may require a deposit, depending on the deal. Variable rate programs usually have no deposit requirement but often have higher kWh prices than fixed rate options.
In Texas, your Electricity Facts Label (EFL) — included with every electricity contract — provides all the essential information about your deal. These include cancellation fees, deposits, electricity prices, and other charges. Check the EFL for any agreement you intend to sign.
Will Direct Energy Charge Me a Cancellation Fee?
Direct Energy may charge a cancellation fee if you terminate your contract early.
Direct Energy customers moving homes to an area where the company operates may be able to shift their existing deal without incurring any costs. For example, suppose you move within Texas. In that case, there’s a good chance Direct Energy can continue to be your provider at your new home.
Always contact your electric company well in advance before moving to find out about cancellation fees, moving, and all other options.
Do I Contact Direct Energy About a Power Outage or Blackout?
You don’t contact your electricity company when there’s a power outage or blackout. So you don’t call Direct Energy when the lights go out.
Suppose there is a sudden loss of power. In that case, you need to contact your Transmission & Distribution Service Provider (TDSP), also known as a utility company. TDSPs maintain the grid, poles, and lines, and will work to restore power. In Texas, people report outages to the following:
Houston and Surrounding Area
- CenterPoint Energy: 713-207-2222 or 888-572-5399 (toll-free)
- Texas-New Mexico Power: 888-866-7456
Dallas/Fort Worth and Surrounding Areas
- Oncor Electric Delivery: 888-313-6862
- Texas-New Mexico Power: 888-866-7456
South Texas
- AEP: 877-373-4858
West Texas
- AEP: 877-373-4858
- Oncor Electric Delivery: 888-313-6862
- Texas-New Mexico Power: 888-866-7456
How Do You Switch From Direct Energy?
Texas’ deregulated market means people can shop for new electricity companies if they wish. Before switching, you must contact Direct Energy to check for early termination fees and pay any outstanding bill payments. We recommend doing so in advance because it can take a week or two to sort out all the paperwork.
In Texas, failing to clear your energy debts before switching means your old electric company can stop you from getting electricity from a new supplier. This rule holds across all the electric companies operating in Texas and is called a switch-hold.
Does Direct Energy Sell Door-to-Door?
In Texas, Direct Energy suspended its door-to-door sales techniques during the COVID pandemic. The company does have official sales representatives in grocery stores, banks, etc.
Always be wary of any door-to-door salesperson and ask to see official identification. Call the company in question if you have any concerns. Don’t hand over any money or personal information — not even your electricity account number — unless you’re completely sure the representative is genuine. Even then, only interact if you’re interested in their offer and never agree to anything if you feel pressurized.
Direct Energy Regulated Services (DERS) in Alberta cannot sell door-to-door by law.
Everything You Need to Know About Direct Energy
Direct Energy is one of the largest energy providers across the United States and Canada. They serve the residents and businesses of Texas with various electricity plans and offer natural gas in other states.
However, Direct Energy plans are one of just hundreds among energy providers in Texas and beyond. We recommend doing your homework on your energy usage before switching providers and shopping around to see what electricity rates are on offer.
It looks as though energy prices will remain high for the foreseeable future. If cancellation fees or other reasons stop you from changing or finding a better deal, try some of our simple energy-saving strategies. These can reduce energy usage, which should help lower your electricity bill and your carbon footprint.
Brought to you by energysavings.com
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