Direct Energy Review | Rates and Plans

In our review of Texas energy companies, Direct Energy earned a 4.2 out of 5, sitting in 12th place. We gave Direct a 4.7 for its wide range of plan offerings, which is its strongest category, followed by customer satisfaction. Direct Energy provides electricity throughout Texas and serves other deregulated areas in the U.S. and Canada. It also provides natural gas services in some areas.

Backed by nearly 40 years years of experience, Direct Energy offers a variety of plans designed to meet different customer needs. While its prices tend to be higher than the Texas average, they’re comparable to other top electricity providers, such as Reliant Energy and TXU Energy.

We ranked Direct as the best company for extra plan perks. Benefits such as autopay discounts and free electricity weekends might help lower your average rate.

Direct Energy Plans

Direct Energy offers six plan types with choices of 12, 18, 24 or 36-month contracts. It also offers a month-to-month, variable-rate plan. Our top pick is the Live Brighter 12 plan from Direct Energy. This fixed-rate plan has steady rates for 12 months and a discount when you enroll in autopay. Without bill credits or time-of-use restrictions, you can easily predict your monthly bills based on your typical usage. You can choose the 24 or 36-month options for a longer-term plan, but you’re locked into the contract if rates drop.

The Free Power Weekends plan provides free electricity from 6 p.m. on Fridays until 11:59 p.m. on Sundays. While weekday rates cost slightly more than the Live Brighter plan, this option may suit you if your home consumes the largest portion of energy on weekends. The Twelve Hour Power plan also delivers free electricity, but every night from 9 p.m. to 9 a.m. Both of these options are time-of-use plans that require you to adjust your energy usage to match the discounted periods. However, this plan type can often lead to higher-than-expected bills.

Solar panel system owners can benefit from the Direct Solar Unlimited 12 or 24-month solar buyback plan. You’ll secure a fixed rate and earn credits for extra energy your panels generate. There’s no cap on the amount of credits you earn.

The Power Balance plan is a unique option where you pay a flat monthly price regardless of usage (up to 2,000 kWh). It simplifies budgeting since prices won’t fluctuate, but you’ll benefit most if your home consistently uses near 2,000 kWh but doesn’t stray over that number. If you go over 2,000 kWh, you’ll likely pay more than with other plans.

The Bright Choice plan provides variable rates where your price changes each month with the market. While we typically don’t recommend variable-rate plans for long-term use, this option works well when you need flexibility or want to take advantage of potential market dips.

Our Thoughts on Direct Energy

Direct Energy is a solid choice for customers who prioritize plan personalization and customer service over budget. It offers top-notch customer care and a wide range of plan types. However, its rates are more expensive than top competitors, such as TriEagle and Rhythm Energy.

Direct Energy, founded in 1986 and bought by NRG Energy in 2021, stands out for its extensive business history and expertise in providing energy services, including electricity and natural gas, in North America.

Direct Energy scores well for its customer experience satisfaction and its wide range of plan offerings.

Its plan variety includes fixed-rate plans, variable-rate plans and solar buyback plans. The company also offers a range of term lengths, including 12, 24 and 36-month plans. Some plans feature perks and incentives, such as a free Amazon Prime account, free power on the weekend and a gift card referral program.

You can also access a discounted rate by simply enrolling in autopay. You won’t have to worry about missed payments, but the rates may still be higher than competitors — even with the discount.

You can contact its great customer service team via phone call or email 24/7. While convenient support access is a major perk, customer reviews vary. Some report pushy door-to-door salespeople and online billing issues. Expensive bills are another common complaint, and you can expect to pay a higher rate than the Texas average, based on U.S. Energy Information Administration (EIA) data. We recommend comparing prices and perks to other electricity suppliers before signing a contract.

Pros and Cons

Pros:

• 38-plus years of energy experience
• Convenient 24/7 customer support
• Wide service availability

Cons

• No satisfaction guarantee
• Pricier than the Texas average
• Limited plans for predictable bills

 

How Does Direct Energy Score in Our Review?

Overall, we rated Direct Energy 4.2 out of 5, which is competitive with the average for providers we reviewed. Check out the table below to see how Direct Energy compares to all 25 providers across all categories.

Plan Offerings

Direct Energy received a 4.7 for plan offerings. With this nearly perfect score, you have a long list of options to find which best fits your home’s energy needs. You can choose from fixed-rate, variable-rate, green energy, solar buyback and time-of-use plans. Direct also offers a month-to-month, variable-rate plan for those looking for a short-term energy solution. As an additional perk, some offer a free Amazon Prime membership for the length of your contract.

Customer Satisfaction

Direct Energy earns a 4.5 out of 5 for customer satisfaction, its second-highest-rated category. Direct has a long-standing business history and provides customers with several easy ways to access customer support. It also has a very high rating with the Public Utility Commission of Texas (PUCT), bolstering its ratings in our review.

Bill Predictability

Direct Energy offers a wide range of plan types, including time-of-use plans and bill credit plans. These rate structures can cause confusion and lead to large rate variations across usage levels. This makes its bills less predictable than other providers, hence its lower ranking in this category.

Direct Energy Rates and Monthly Pricing

Direct Energy is pricey compared to other energy suppliers and received a 3.5 out of 5 in this category. Energy companies with a higher score in this category offer more affordable plan options than Direct Energy.

How Does Direct Energy Rank Against the Competition?

Direct Energy scores in between popular providers, sitting slightly lower than TXU Energy and tying with Gexa Energy. Use the following table to compare providers and recommended plans.

Factor	Direct Energy	TXU	Gexa
Our overall rating (out of 5)	4.2	4.4	4.2
Number of plans available	6	10	16
Top 12-month plan	Live Brighter 12	Simple Rate 12	Energy Saver 12
Best feature	Customer satisfaction	Customer satisfaction	Plan options

Where Is Direct Energy Available?

Direct Energy offers residential and commercial energy in all six transmission and distribution utility (TDU) service areas in deregulated areas of Texas.

Direct Energy Reviews

Direct Energy’s online customer reviews are concerning. Although we rated Direct Energy highly for customer satisfaction, the category doesn’t rely solely on reviews. Common pain points we found from the Better Business Bureau (BBB) and Trustpilot include bad experiences, from misleading sales tactics to errors on multiple billing cycles. Some customers have even voiced concerns about Direct Energy being a scam.

Direct Energy isn’t BBB accredited and received a D rating for “failure to resolve underlying causes of a pattern of complaints.” Other reviews report dissatisfaction with door-to-door sales reps who are “aggressive and rude” when customers say they are not interested in buying a plan.

Most of the 74 reviews on Trustpilot (94%) are 1-star ratings. Of the few 5-star reviews, only two are from within the past year. However, Direct Energy is rated very highly on the Public Utility Commission of Texas (PUCT), boasting fewer complaints than Reliant Energy, TXU Energy and Gexa Energy.

In a recent good review on the BBB, Rebecca T. wrote that Direct Energy offers competitive pricing and hasn't raised its rates despite years of being a loyal customer. Direct Energy also boasts a 4.2 out of 5-star rating from more than 1,500 Google Reviews.

What Should You Look for When Reading Direct Energy’s Electricity Facts Label?

The electricity facts label (EFL) is an important document detailing your energy plan. It includes your rate, base charges, TDU fees and other information that can help you avoid surprises on your bill. Here’s an example of the EFL for Direct Energy’s Live Brighter 12 plan:

Notice the difference in cost between the energy charge and the average price per kWh. The average price includes your base charge, energy charge and TDU delivery fees, all at set usage levels. We captured this EFL on January 16, 2025.

• Average price per kWh: This is the advertised rate at set kilowatt-hour usage levels.
• Average price per kWh with discount: This is the discounted advertised rate that applies when you enroll in AutoPay. Both of these rates only apply if you manage to use precisely the level of kWh displayed.
• Base charge: A flat monthly fee from Direct Energy for providing electricity services.
• Energy charge: This fee is the actual rate you’ll pay regardless of usage levels.
• TDU delivery charges: These are fees for delivering electricity to your home, set by your utility company and passed through without markup.
• Type of product: Displays if the plan has fixed or variable rates.
• Contract term: This is the length of your contract, typically 12, 24 or 36 months.
• Early termination fee (ETF): The ETF is a fee you may owe if you cancel your plan before the contract ends.
• Renewable content: This section details how much of your energy comes from green energy sources, such as wind or solar.
• Other disclosures: This section explains how your price might change during the contract. For fixed-rate plans, your energy rate stays the same, but TDU fees can vary.

What Is The Best Way To Contact Direct Energy?

Direct Energy offers 24/7 customer service. You can call the number below or send a message on Direct’s website.

• Current customers: Call 888-305-3828
• New customers: Call 855-461-1926
• Website: Send a message online
• Outage reporting: Contact your utility company during an outage. They are responsible for maintaining lines and infrastructure.

How Do You Move or Transfer Service with Direct Energy?

You can transfer your Direct Energy service to your new address, as long as it’s also in a deregulated part of Texas. Simply contact customer support, provide the address for where you want to transfer service and give them your move-in date. You can switch energy providers or select another Direct Energy plan without paying cancellation fees if your new address is outside Direct’s service area or your plan isn’t available there.

Final Take: Direct Energy Charges High Rates But Offers Many Perks

Direct Energy is a reliable option due to its long history in the deregulated market, a wide range of plans and solid customer satisfaction scores. Although it doesn’t offer the cheapest electricity rates in Texas, its prices are commensurate with those of other top companies, such as Reliant Energy and Green Mountain Energy. Direct also offers a range of perks and incentives that some Texans may find enticing, such as a free Amazon Prime subscription, discounted times of use and solar buyback plans.

Frequently Asked Questions About Direct Energy

Will Direct Energy charge me a cancellation fee?

You’ll likely owe a cancellation fee if you terminate your plan before your contract period ends. You can determine the cost by reviewing your plan’s EFL. You can avoid any ETFs if you cancel your energy plan because you’re moving outside of Direct Energy’s service area.

Do the Direct Energy rates shown include everything?

Direct Energy’s advertised rates typically include the energy charge, base charge and TDU delivery fees. However, they may also assume qualification for a usage or time-based rate discount that only applies to a set usage level. These advertised rates also typically don’t include any state or local taxes. We recommend reviewing a plan’s EFL to spot any gimmicky discounts or hidden fees before enrolling in an energy plan, even if it advertises some of the best rates.

Does Direct Energy run a credit check?

Yes, Direct Energy runs a soft credit check to determine if you owe a deposit to start your service. Some electric companies will require a deposit if you have a low credit score or a history of late payments. The credit check won’t impact your credit score, and you’ll get your deposit back after 12 months of on-time payments.

What is the best Direct Energy electricity plan?

We recommend the Live Brighter 12 from Direct Energy because our research indicates that it offers predictable bills at a lower rate than other Direct Energy plans. The plan includes a .5 cent discount per kWh when you use autopay, but its rates are fair even without the discount.

How We Rate and Review Texas Electricity Companies

With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help Texans cut through the complexity and find the best electricity plan for their needs, whether they're moving to Texas or looking to switch providers.

We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:

• Plan features (33%)
• Customer satisfaction and brand trust (27%)
• Plan rates and pricing (20%)
• Energy bill predictability (20%)