We recently switched to a green provider after several years as a customer of Direct Energy. In that time we paid all of our bills and were good customers. Over the weekend we received a phone call from an auto-dialer asking us to call some 800# without identifying who it was from, so we didn't call back. Yesterday we got our final bill from Direct Energy saying that we had to pay it by 09/22 or it would go to collections. So I mailed the payment. Today my husband gets a phone call threatening collections on the bill that isn't even due yet. The discussion did get heated and I won't even go into the details, but the two people he spoke to from their final billing department were rude and didn't care that we already paid. I have never been harrassed for not paying a bill before we receive it!

No matter what happens with our next provider we will never go back to Direct Energy and we will be sharing our experience with anyone that will listen. This is just outrageous that customers in good standing would be treated that way.

Claimed that I agreed to a five year contract for gas and hydro charges. I agreed to look at the contract after numerous phone calls, having been told that I would have to authorize the contract by phone. I had to specifically ask them if it was a 'contract' for 5 years, the make it sound like they are performing a customer service. I called back 6 weeks later to tell them I had definitely decided to go with another company and was told I had already been contacted and signed on 4 weeks earlier. I was told they had tapes. I look forward to hearing them. They are liars, and any tapes will be faked, they commit fraud and will get away with it. I will probably sign with another company, but by the time this is settled it will be at a higher rate. Direct energy will cost me money on a monthly basis for 5 years if this happens.

I am a first time homebuyer. My experience with Direct Energy has tought me a valuable lesson these past weeks. I want to share what I have learned with others, especially new home buyers in the Ottawa region.

This comment contains:
- links to reliable sources
- the actual laws that protect us customers
- Direct Energy's (DE) Early Exit Fees information
- my own personnal experience and the lessons I learned.

You can never be too informed when it comes to natural gas prices and the decisions you need to make. Here is a useful link about natural gas and the services available in the Ottawa region:

Brochure from Ontario Energy Board with basic information we should have as a customer : http://www.oeb.gov.on.ca/OEB/_Documents/Consumer+Brochures/brochure_natgas_200802.pdf

DIRECT ENERGY CAME TO MY DOOR

A sales representative from Direct Energy came to my door to sign us up for our natural gas account. I remembered seeing the Direct Energy sticker on our hot water tank. I also remembered seeing the Embridge sticker on our furnace. This indicated to me that the company was trust worthy and that I needed their service to continue using my hot water tank.

The sales representative explained the protection plans for natural gas and said that I needed to contact Enbridge to make sure that my account was set up. What then is the relation between Enbridge and DE? His answer wasn't clear, but I understood that they somwhow worked together. He then took out a bill sample that had the Enbridge logo on it. I assumed that both companies worked together.

He also told me, after I asked, that they were the only company from which we could buy natural gas. There, I had it : they were my only option, their sticker was on our hot water tank. I assumed it was the right choice. It was not.

DE, NOT MY ONLY OPTION?

I called Enbridge the next day to make sure that my account had been set up. I mentionned the Direct Energy salesperson and wanted to confirm with Enbridge the relationship between them and Direct Energy. That's when I learned that I could have bought my gas from Enbridge. I felt very angry that I was lied to.

A couple of days later, a sales rep. from another energy company (I forget the name) came to my door. They were offering the same service as Direct Energy. I did not hesitate to tell him that I had signed with Direct Energy and was lied to. This guy then took out the Direct Energy booklet I had received, with the Terms and conditions, and showed me the passage about Early Exit Fees.

EARLY EXIT FEES

The Terms and Conditions state that if you terminate a contract with DE before your time is up, you will be charged 200$ a month (plus other expenses) for the duration of that period. It also states that if you move outside Ontario or to an area where Direct Energy cannot service you, that you will be charged Early Exit Fees.

I called Direct Energy this week and the calling agent told me something completely different from what I read in the Terms and Conditions. She said that if you move outside the province, you need to provide DE with proof that you are moving at least 30 days before your moving date. They will cancel your contract without charging you any fees. If you are moving into an area where natural gas is not available (no gas lines), you need to notify them at least 30 days prior to your moving date and your contract will be cancelled without fees.

The salesperson that came to my door did not go into these details, he only mentionned that if I moved in Ontario, my account would be switched to my new address, and that if I moved outside the province, my contract would be terminated. He didn't mention any early exit fees. And I did not think to ask about them either.

I still do not know if I would be charged Early Exit Fees if I decided to move to another province or to a place where there is no service. It's the call center's representative's words againt the Terms and Conditions. I think the Terms and Conditions hold up better in court... so beware.

FALSE INFORMATION : A DE PLAN THAT DOES NOT EXIST

I wanted more information. I felt lied to. I had signed a contract too fast, thinking it was my only option. I then conducted a research, comparing what Direct Energy had to offer me and what Enbridge could offer.

I was deceived once again. The sales rep. from DE had told me that they would call me back within the month to confirm which plan we wanted fo our natural gas : a fixed plan with a fixed rate or a variable plan with variable rates. When I called Direct Energy to inquire about their varable plan, I was told that no such plan existed. They had stopped offering variable plans in 2005. This took me by surprised, seeing as they had a page on variable plans on their website: http://www.directenergy.com/EN/Ontario/RES/Pages/GAS/VariableRateFAQs.aspx

First I was actually told by a call rep. at DE that the variable plan was only available through an online offer, and that it was new. I decided to call back to talk to another representative who was very helpful. She even talked to her supervisor to make sure she was giving me the right information. The variable plans only exist for electricity, not for natural gas.

To top that off, she could see the rate I was given on my contract, 43.5 cents per cubic meter. She dais that I should have been offered a rate of 36.9 cents per cubic meter, because I am a new customer.

She offered to cancel the existing contract because I had been given false information and because my rate was too high. She said that she could sign me up for the new rate, in a new contract. I said I would think about it and call them back if I was interested.

CANCELLING A CONTRACT : OUR RIGHTS AS CUSTOMERS

#1. A contract (some exceptions, see below) is not active unless you reaffirm it. A representative from the company will call you back to reaffirm. If you do not reaffirm, your contract will not be activated.

Here is the law (Ontario Energy Board Act 1998, Section 88.9):

Once you sign a contract for the purchase of natural gas or electricity, as a general rule it will not remain in effect unless you confirm that you wish to accept the contract. This process is called "contract reaffirmation", and it applies in all but a few circumstances (see "When Reaffirmation Is Not Required", below).
The rules that apply to contract reaffirmation are as follows:
1. Starting on the 10th day after you have received a written copy of the contract, the marketer or retailer is permitted to contact you to ask you to reaffirm your acceptance of the contract.
2. At that point you may choose to reaffirm your acceptance of the contract, or you may choose not to do so. If you notify the marketer or retailer that you do not wish to reaffirm the contract, you cannot be required to pay any cancellation fees or penalties.
3. If you do not reaffirm the contract by the 61st day after you received a written copy, the contract will no longer be in effect as of that date. Again, you will then have no obligations under the contract as of that date, and you cannot be required to pay any cancellation fees or penalties.
4. If you reaffirm the contract and then decide at a later date to cancel it, you may have to pay a cancellation fee. The cancellation fee or the method by which it will be calculated must be stated in your contract.
Typically, the marketer or retailer will phone you to ask you to reaffirm your acceptance of the contract. If you reaffirm by phone, the marketer or retailer must record the phone call, and the recording must be given to you if you request it. You also have the option of reaffirming or refusing to reaffirm by giving written notice to the marketer or retailer.
Always ask for a reference number when you cancel a contract on the phone.

Summary of law : http://www.oeb.gov.on.ca/OEB/For+Consumers/Your+Energy+Options/Contracts+-+Consumer+Protection+Rules
Actual law : http://www.search.e-laws.gov.on.ca/en/isysquery/db272a39-ed3a-4f60-89ec-b96d800fbcb3/3/frame/?search=browseStatutes&context=

#2. Send a registered letter or a fax to the company, stating that you want to cancel all existing contracts with them. This tip was given to me by a customer rep. at the Ontario Energy Board and by a customer rep. at Enbridge.

Here is the law (Consumer Protection Act 2002), taken from the DE Terms and conditions:

If this Agreement was entered in person at a place other than our place of business, a trade show or an exhibition, the following excerpt from the Consumer Protection Act 2002 applies: "You may cancel this agreement at any time during the period that ends 10 days after the day you received a written copy of the agreement. You do not need to give the supplier a reason for cancelling during this 10-day period."

HOW I CANCELLED MY CONTRACT (10 DAY COOLING OFF PERIOD)

I cancelled over the phone with DE, wrote down the reference number. I also filed a complaint against the sales rep. that came to my door for giving me the wrong rate and the wrong information.

I also wrote a letter, in order to make sure that my cacelation would be treated. I added the reference number to the letter as well. Isent it by fax to 2 different numbrs given to me by 2 different rep. at DE. One of the numbers was incorrect, as I received a call the next day from an individual who had received my fax at his private residence. Luckily, I could rely on the other number to be correct. I also took no chance and sent an email to [email protected]. I got an automatic response saying that it had been received.

UNDERSTANDING YOUR ENBRIDGE BILL

https://portal-plumprod.cgc.enbridge.com/portal/server.pt?open=512&objID=243&PageID=0&cached=true&mode=2&userID=2

THE BOTTOM LINE

We as customers need to be more informed. Please keep in mind:

Enbridge is the utility. The bring the gas to your house. You will be billed by Enbridge (or your local utility) no matter who you decide to buy gas from.

Direct Energy is a marketer. They sell you gas. Enbridge will bill you on behalf of Direct Energy for the natural gas.

Know your rights as customers. If you have signed a contract and want to get out of it, send a letter of cancellation request within your 10-day coolling off period. Do not reaffirm your contract when the marketer (DE) calls you, if you do not want to contiue with them.

I hope my experience and my little investigation helps at least one person out there. We have to be vigilant and aware of these things. We have to be responsible consumers. I think I'm one step closer to it now.

Hello,

Firstly, I would like to compliment the associate at Direct Energy for keeping her cool. Although I only ever slightly raised my voice, most defensive companies would have never lasted on the phone.

Now for the story...

Not unlike many of you, we decided as a young family to protect ourselves from the 'corporate menaces' at Veridian from skyrocketing hydro rates. At the time, the 5 cents per kwh that we were paying netted us bills around $380 for the quarter. With their carefully laid out accounting, Direct Energy scared the hell out of us one unsuspecting spring afternoon at our door, and we fell prey to a 'very conservative' rate of 9.65 cents; something that possibly even within 6 months would be matched by Veridian. Although I have requested my signatures for the documents (they called numerous times to get my business), I am in a battle with them that, whatever it takes, will be my relentless mission to win. We have paid at least $1600 more over the last two years than we would have, are locked in for 3 more years, and would have an early cancellation charge of $600. I just spoke to them today, and already I am writing this letter. They have no idea how many people are about to find out about their door-to-door scams, their 'hands-off' approach once they've locked you in, and their BS responses. In fact, I was offered a lower rate of 8.49 cents just for calling today, as long as I lock in for another five years! My next stop; my lawyer. Next; every forum there is concerning consumer protection. Next; an email to everyone on my contact list. And so on...

Please; don't let yourselves get trapped. My bills have not been less than $600 since I so-called 'switched'. Watch out for more correspondence; it certainly will be coming.

This ongoing battle since Dec/07 has to do with a "account" we have with Direct Energy. Not ever in my wildest dreams would I do that. Having heard the horror stories to date. But there it was. My wife was in the hospital and I opened the hydro bill to see we were being supplied hydro from them. I called and after about 5 months they decided since they could not find a phone conversation, fax, email, signed contract or the like that they'd be happy to cancel our "account" ( oh so nice of them) also refund monies paid to them. Well they called telling me the cheque for around$400.00 "should be ready to FedEx soon". I told them to keep their cheque and send me the amount I paid of almost $1.300.00. They explained in canceling a account they have to factor in rates, surcharges, etc... and that the amount they figured was indeed right. I told them "YOU ARE NOT CANCELING A ACCOUNT BECAUSE YOU TOLD ME THERE WAS A BIG MISTAKE AND WE SHOULD NOT OF BEEN ON YOUR SYSTEM!!! SO, I UNDERSTAND THAT THE POOR SAP THAT FALLS FOR YOUR SCREAM WOULD HAVE TO PAY A "CANCELLATION CHARGE" AND WHATEVER ELSE, BUT I'M NOT IN A POSITION NOR WILL I ACCEPT ANYTHING LESS THAN WHAT I PAID, ANY FEES OR WHATEVER WILL HAVE TO COME OUT OF YOUR POCKET"

It seems just when you think you've heard it all...