CRAP (I think) - Been with Direct Energy contract for 4+ years!!!!

[blainehamilton]

Okay, let me be the first to say, my wife takes care of the utility bills. I usually get the fun with dealing with customer service when it comes to getting new features, renewing contracts, etc, but this really threw me for a loop.

Looks like they may have done the ol' 'can I see your bill' or 'you aren't signed up to save on energy costs' to her sometime in mid 2005.

I just happened to see a couple of Direct Energy bills on the pile to file away in her office. Did a quick glance thru and went online to research a little more to see how MUCH we are being screwed. Also called their customer service to confirm the contract started in June of 2005 and ends June 30 2010.

Here's what I can find so far:

We signed at a rate of 7.9 cents per kwh for electricity and $7.99 per GJ for natural gas. We get a discount for each year on the contract and are now at 7.5 cents for power and 7.59 for gas.

From what I can see, the current contract renewal rates are 10.99 cents per kwh and $7.99 per GJ for gas.

Best I can determine is spot rates for my local provider are 5.38 cents and $3.30 from the EnergyShop website.

Should I be cancelling this contract next june and making sure I go with my local provider unregulated option? The rates DE seems to have quoted online are in line with someone smoking crack...


I doubt it's worth it to dump the contract at this point considering there is only 8 months and there is a $800 cancellation charge from Direct Energy for EACH SERVICE!!!

HELP!!! Should I start bombarding Direct Energy next spring that I want to cancel service with them starting June 30?

[TrevorK]

At first I thought you're on crack - electricity prices were 10 or 11 cents/KWH when I locked in at 8 cents. But I just checked, and have they ever dropped.


I signed up with Enmax, at the time their 8 cents/KWH was lower than the regulated rate and you get $8-$10/month in cash back for signing up gas/electricity with them (and the gas does NOT need to be contract, mine is floating).

[blainehamilton]

Is there any way to see price history over the last few years? Some sort of chart?

Been searching Atco, Enmax and Epcor and so far nothing...

[woof]

If you're going to cancel June 30 make sure you understand exactly what their cancellation process is, eg how much notice, does it have to be in writing etc, and document everything. If it's something that has to be mailed in use registered mail.

[blainehamilton]

Good call. From the other threads I have seen, Direct and Summit both love to ignore cancellation notices made over the phone and seem to have a fetish for renewing your contract when you don't want it...

[TrevorK]

Is there any way to see price history over the last few years? Some sort of chart?

Been searching Atco, Enmax and Epcor and so far nothing...

http://www.ucahelps.gov.ab.ca/186.html

That will give you all the power prices, and captures the prices of the various contracts being offered.

It appears the lower electricity price just came about.

[mbg]

At first I thought you're on crack - electricity prices were 10 or 11 cents/KWH when I locked in at 8 cents. But I just checked, and have they ever dropped.

Electricity prices were never that high. They have only been going up, though very slowly. 10-11 cents/kwh is roughly what you pay now when all of the distribution, loss, and other fees are factored in, but the energy plan rates probably only concern cost of energy itself.

[mbg]

Looks like they may have done the ol' 'can I see your bill' or 'you aren't signed up to save on energy costs' to her sometime in mid 2005.

You say this as if you had no say in the matter (i.e. "I had an argument and the next thing you know, a gun arrived and it went off and now he's dead").

If you signed up in 2005, you likely signed up when natural gas prices were high and with an uncertain future (there is no excuse for signing the electricity price contract). So, you took a gamble and lost. When you decide whether or not to renew, you have to make the same decision with the new information.

All of the talk right now is about an explosion in natural gas supply due to the opening of the shale gas frontier in North America. It might not last long but, combined with the economy and the momentum of exploration, it will last for at least 5 years. I would not bet on natural gas prices rising significantly if at all in the near future.