If you're new to Texas, there's a good chance that you don't understand how its electricity market works. Texas has deregulated electricity, which means that electricity is a good and service to be bought and sold. The companies that buy and sell electricity, and the ones to whom you pay your monthly electric bill, are known as retail electric providers (REPs).
Because of how big and crowded Texas is, there are more than 130 REPs in the state, including Direct Energy. Although Direct Energy is one of Texas's biggest and most successful power companies, that doesn't mean they're the right fit for you. To find out, GoodCharlie Energy has all the information you need about Direct Energy. By the end of this article, you'll be able to decide for yourself if Direct Energy is the REP for you.
- Who is Direct Energy?
- What Types of Electricity Plans Does Direct Energy Offer?
- Is Direct Energy Available in My Area?
- Is Direct Energy Right for Me?
- Who is a Good Alternative to Direct Energy?
Who is Direct Energy?
Today, we know Direct Energy as a retail electric provider with its home office in Houston, Texas. Initially, however, Direct Energy was founded in Toronto, Canada, in 1986. While part of their original goal was to provide electricity to homes and businesses in Canada, they quickly expanded to other avenues and countries. Currently, they serve more than 4 million customers throughout North America.
In addition to being a retail electric provider, Direct Energy is also an energy and electricity producer. They also have numerous oil and natural gas refineries and have bought and sold many smaller companies. In a recent turn of events, Direct Energy was bought out by NRG Energy and now serves as one of its subsidiaries.
However, Direct Energy still retains its name as a retail electric provider in Texas and across North America. They're more extensive and powerful than ever and continue to be one of the most popular REPs in Texas.
What Types of Electricity Plans Does Direct Energy Offer?
Prepaid Electricity Plan
Prepaid electricity plans are very different from traditional fixed-rate plans. Rather than paying at the end of the month for the electricity you use, you pay your bill at the start of the month. They're similar to prepaid phone or internet plans, where you pay the same amount each month for a set amount of kilowatt-hours.
The downside of prepaid electricity plans is that they don't have any stability, because they're on a month-to-month basis. Prepaid electricity plans also have rates that are usually higher than average. Prepaid rates are higher because they're generally only chosen by people who can't pass a credit check, and prepaid is their only option.
Variable-Rate Plans
Variable-rate plans aren't much better than prepaid electricity plans. With variable-rate plans, you never know more than a month in advance what your electricity rate will be. Your rate can fluctuate wildly from month to month because the price will depend on the electricity market. Essentially, variable-rate plans are like playing the stock market because there's a chance you'll save money, but there's also a chance you'll overpay.
Fixed-Rate Plans
Fixed-rate plans are the most stable and popular plans in Texas. With fixed-rate plans, you sign a contract that lasts between 12 and 36 months on average. During that time, you know exactly what your electricity rate will be every month. So, if you sign up for a 24-month contract at a rate of 15 cents/kWh, your rate won't go up or down during that time.
However, the one caveat of fixed-rate electricity plans is that they often have tiered rates. With tiered rates, you pay a different price/kWh based on the amount of electricity you use. So, let's say you sign up for an electricity plan with Direct Energy at a rate of 15 cents/kWh based on using a minimum of 2,000 kWh.
What you may not see, however, is that the rate jumps up to 20 cents/kWh if you use between 1,000 and 2,000 kilowatt-hours. If you use less than 1,000, your rate will increase to 25 cents/kWh. Therefore, it's essential to know your energy usage and check your plan's Electricity Facts and Labels sheet before signing up for it.
Is Direct Energy Available in My Area?
If you live in a deregulated part of Texas, there's a good chance that Direct is available in your area. Like we said before, they're one of the biggest REPs in the state. As such, they have a broad reach and offer plans in nearly every deregulated part of Texas.
Is Direct Energy Right for Me?
Remember, just because a company is massive and popular doesn't mean they're suitable for everyone. With Direct Energy, you're getting a REP with its hand in dozens of other companies and ventures. There's no guarantee that they'll be able to give you the same customer service and attention that a smaller company can, such as GoodCharlie Energy. Contact us to learn more!
Who is a Good Alternative to Direct Energy?
If you're not sold on signing up with Direct Energy, you should consider GoodCharlie Energy. We are one of the newest and best REPs in Texas, and we're also a company with a mission - to make Texas the best state for a dog to live in. At GoodCharlie, we understand that your pets are your family, and many of our rewards and benefits are geared toward helping them.
In addition to having outstanding benefits, we also have quality, fixed-rate electricity plans. Like all fixed-rate plans, we have different tiers based on energy usage. Unlike other electricity companies, however, our tiered rates are very similar to one another to minimize the extra cost if you go over your typical usage.
Each of our plans is also available as a 100% Green Energy Plan. This means that your entire electricity bill goes toward researching and creating electricity from renewable resources. Finally, you'll also get outstanding customer service with GoodCharlie Energy. Our staff consists of people living in Texas who understand how the electricity market works. Contact us to make the switch today!
