Direct Energy

Direct Energy logo

Direct Energy logo

Direct Energy is a retailer of energy and energy solutions. The company was founded in 1986. With over 5 million customers in Canada and the United States, they are the largest energy and home services retailer in North America. The current president of the company is Paul Massara.

In 2000, the company was acquired by Centrica. Centrica acquired Energy America in the same year, and Enbridge two years later. In January 2003, Direct Energy launched in Ontario. Two months later, they began offering services across Canada. The company acquired and bought many companies during 2004, including Quintana Minerals Canada Investments Corporation, Luced Heating Contractors, Residential Services Group, BASE Controls Limited, and the Frontera Energy Center.

Controversies

In 2003, Direct Energy was fined $157,500 after investigators discovered 21 forged contracts trapping customers into long-term energy deals. According to Paul Massara, president of the company, the forgeries took place between June 2001 and April 2002. Both Direct Energy and its U.S. affiliate Energy America have been charged with employing unethical business practices, with Energy America being fined over $500,000 in penalties for enrolling customers without permission and using deceptive sales pitches. The companies have been caught using such unethical business practices in Michigan, Georgia, Texas, Ontario and Manitoba.

In 2004, in Alberta, Direct Energy purchased the retail operations of ATCO Gas and ATCO Electric as part of the province's move to deregulate the retail energy industry. Some consumer groups objected to the sale, citing Direct Energy's past record. However, after many public hearings, the sale was approved by the Alberta Energy & Utilities Board (AEUB). In May 2004, Direct Energy Regulated Services took over the retail gas and electric operations from ATCO Gas and ATCO Electric, selling gas and electricity at rates approved by the AEUB; these "regulated rates" are largely determined by market forces. (Meanwhile, the ATCO companies still own and operate the infrascructure that delivers gas or electricity in their service territories.) Adding to the confusion is the fact that a second Direct Energy company, "Direct Energy Essential Services", also operates in Alberta; this second company sells fixed-price contracts for gas and electricity (ie, where the price of the utility is fixed through the life of the contract, as opposed to the changeable "regulated rate").

External link

• Direct Energy web site
• Direct Energy article News report on Direct Energy forged contracts with links to other stories of consumer complaints