Is Direct Energy a scam?

**herdjohnson** · 07-02-2012, 06:48 PM

Connecticut Electricity Supplier - FAQ

It sounds like they're a middleman between you and the power company. I don't think they offer that sort of thing where I live, so I don't know much about it. It doesn't APPEAR to be a scam per se, but doesn't necessarily mean that they're worth paying any money to either.

**Redraidernurse** · 07-02-2012, 06:57 PM

I think you did the right thing. I wouldn't respond nicely to any pushy person at my door demanding to see my gas bill.

**snafu** · 07-02-2012, 07:43 PM

I suggest you call your Better Business Bureau to ask if they have complaints about Direct Energy. These 'middlemen' companies use aggressive, commission only sales staff to convince homeowners that their re-seller system for gas and electric is less expensive than the utility providers. They sell a contract with specific amount per KWH [electric} JG [gas]. Just now spot price for gas is around $ 2.77 a unit [I think I read] In our area they sell gas per unit at $ 8. & change which is double the normal spot price which was $ 4 & change per unit. you still pay the administrative and delivery fees of your actual provider

**bjl584** · 07-03-2012, 05:14 AM

I would not do business with a company that came to my front door and asked to see my billing statement. I don't know if they are a scam or not, but their business practices are enough for me not to give them any of my business.

**PMMM** · 07-03-2012, 07:29 PM

Good thing he didn't come to my door. He wouldn't like what I would give em. What a pinhead.

You did the right thing. Send em packing. Lots of scammers out there. Anyone who would ask for something like that is a scammer in my book.

**savemore** · 07-05-2012, 09:13 AM

While I wouldn't call Direct Energy an out right scam, they have some pretty questionable selling tactics. They use unsolicited high pressure sales tactics. For me, any company that needs to sell their service / product this way (rather than let the service / product sell itself) is a company to avoid. I think you made the right decision not to continue the conversation with them.

**mssolosoldier** · 09-07-2012, 05:19 PM

Some electric companies are legit, hoever they won't disclose what the hidden charges are. Do your rrsearch & always ask them to see their "Electricity Facts Label" & "Terms of Service Agreement" those 2 documents will show you everything that they will charge you. Also never gill out any paper work.

**prcs1982** · 09-11-2012, 01:20 PM

reply to "is Direct Energy a Scam"

I am a direct to direct marketer for Direct Energy. Direct Energy is not a scam we are an energy supplier for your utility company. We come around quarterly to verify that you are receiving the lowest rate that you are eligible for according to your kwh usage. If a representative comes to your home or business and seems to be sketchy ask for Identification. The sales rep should always have a badge on and visible for you to see. If you have any other questions do not hesitate to ask the rep to find out more about the product. They're job is not to be pushy but to help you get the rate that you are eligble for. you do not have to show the bill if you do not want to. But again they are sent out to help you be at the lowest rate possible and in order to do that they will need to see the Generation Service Detail line on your bill. I hope that this has helped you and answer any questions that you may have.

**ecoadapt** · 09-12-2012, 02:52 PM

Originally posted by Redraidernurse View Post

I think you did the right thing. I wouldn't respond nicely to any pushy person at my door demanding to see my gas bill.

I would do the same as you did. It's not that they are scam or something but they shouldn't be pushy either!

**TLynne** · 09-28-2012, 08:29 AM

Lesson learned...

I, too, had someone come to my door. He wasn't pushy at all. He did say he could help me save money on my bill and asked to see it. He explained how Direct Energy could help lower my utility bill, blah, blah, blah. I signed up and everything he told me was apparently a lie. I have not seen any of the changes we discussed. My bill is higher now than its ever been. Please don't be gullible like me and listen to any rep from this company.

**atomicrc11** · 09-28-2012, 10:42 AM

I have not heard of them but there are many choices for customers. In MA and CT power is deregulated, meaning you have CL&P or UI provide the infrastructure and you choose who you pay for electricity generation. Check out this site that lists many power suppliers:

CT Energy Info

I use Viridian 100% green energy and it costs about as much as CL&P. when you sign up make sure to read the agreement. I am on the month to month variable plan with no cancellation fees. Some fixed rates have a cancellation fee.

**Electric 1** · 11-02-2012, 06:33 AM

Ive been a utility employee for 22 yrs. 2 days ago I arrive home to find man sitting at my kitchen table with my 20 yr old daughter, filling out a contract as he talked to someone on the phone. Long story short, this salesman for Direct Energy had bullied his way in my house (wife was not home) and had started setting the contract up. Stated he talked to my wife by phone. When I started to ask questions, he simply picked up his things and walked out...not saying a word. When I told him I would have someone look over this contract first and get back to him, the old "Now or Never" sales pitch came out, saying that I wouldnt get as good of rates if I didnt have him fill out the paperwork..because his rates were cheaper than if I called Direct Energy directly the next day...really??!

**Redraidernurse** · 11-02-2012, 09:53 AM

Originally posted by Electric 1 View Post

Ive been a utility employee for 22 yrs. 2 days ago I arrive home to find man sitting at my kitchen table with my 20 yr old daughter, filling out a contract as he talked to someone on the phone. Long story short, this salesman for Direct Energy had bullied his way in my house (wife was not home) and had started setting the contract up. Stated he talked to my wife by phone. When I started to ask questions, he simply picked up his things and walked out...not saying a word. When I told him I would have someone look over this contract first and get back to him, the old "Now or Never" sales pitch came out, saying that I wouldnt get as good of rates if I didnt have him fill out the paperwork..because his rates were cheaper than if I called Direct Energy directly the next day...really??!

That is just terrible. What a slimeball.

**AAbonce** · 06-18-2013, 11:28 AM

After a 2-Year Contract...

OK, I've been a Direct Energy user for almost 2 years.

(NOTE: I'm not an employee of any electric company, nor work in favor of any supplier.)

OK, so I sat down today and picked up my electric bills from the last 24 months.

After doing some calculations I found out this:

1. I compared the generation costs from Direct Energy against the rates from my former electric supplier company (PECO).
Remember that in the 2-year contract you sign with Direct Energy they promise to keep their rates fixed. This is true, and I got .096 per KWH against a fluctuating rate from PECO (between .086 and .11 per KWH)
So, I saved $14.24 the first year.

2. Now, in the second year is where it became interesting.
In the same contract, it says that in the second year the rates would fluctuate month-by-month. I haven't seen any fluctuation, ONLY AN INCREASE!.
Starting on month 13, the rate increased from .096 to .099, then to .149, and now it's .12 per KWH. PECO's rates were still fluctuating between .086 to .105 per KWH.
So, in the second year I spent $59.86 more than if I had stay with my original provider.

CONCLUSION: This numbers are just a personal example that I wanted to share with you guys. Remember that if you sign with Direct Energy or any other provider, be sure to read the contract and do the numbers BEFORE SIGNING ANYTHING!
Fortunately, Direct Energy doesn't charge a fee for early termination of contract. So I'll be back to my original provider, before I start looking for another cheaper option.

Good Luck!

Is Direct Energy a scam?