How does Direct Energy score?
Direct Energy earns 78 out of 100. We rate that "good." It gets full marks for time in business and strong marks for price and complaints. It loses the most points for its F grade at the BBB and its extra fees.
90–100 Excellent80–89 Very good70–79 Good60–69 FairUnder 60 Poor
Scores out of 100, from public records only, with the same formula for every company. Read our TXU, Gexa, Green Mountain and Reliant reviews.
See the evidence behind every point
| Category | Points | Evidence |
|---|---|---|
| Complaints to the state | 20 / 25 | 4 of 5 on the PUCT complaint scorecard, 2026. For context, 106 complaints were logged April 1 to September 30, 2026. |
| BBB rating | 0 / 5 | F letter grade on the Direct Energy, LP profile (BBB of Greater Houston and South Texas), checked October 4, 2026. The BBB cites a pattern of complaints whose cause it says wasn't fixed. Only the letter counts. |
| Fines and penalties | 16 / 20 | One qualifying penalty in 10 years: a $70,000 settlement approved by the PUCT in 2017 (Docket 47362), under $100,000 (−4). An earlier $220,000 penalty (Docket 44833) became final July 30, 2015, more than 10 years ago, so it doesn't count. No Texas Attorney General action found. |
| Contract fairness | 13 / 20 | $150 cancel fee on the 12-month plan (5 of 5); no arbitration clause and no class-action waiver (4 of 4); four extra fees beyond late and returned payment (0 of 4); a plain fixed plan (4 of 4); only the legal 3-day free-cancel window (0 of 3). |
| Price | 19 / 20 | Auto Pay Texas 12 at 14.6¢ per kWh at 1,000 kWh in Houston (fact label dated September 30, 2026) is 92% of the 15.88¢ Texas average (EIA, July 2026): 20 − (92 − 90) ÷ 2 = 19. Power to Choose listed no 12-month fixed Direct Energy plan for Dallas (75201), so price is scored on Houston only. |
| Time in business | 10 / 10 | Licensed 20+ years (6): its Texas business dates to 2002, when the BBB opened its file under CPL Retail Energy and WTU Retail Energy, now listed as Direct Energy names. Runs its own bill-help fund, Neighbor to Neighbor (+2). Parent NRG Energy publishes audited financials (+2). |
Direct Energy quick facts
How much would Direct Energy cost me each month?
Slide to the kWh on your last bill to see your real monthly cost in Houston. Watch the low end: under about 430 kWh a month, the $4.95 base charge makes this plan cost more than average. Above that, it costs less.
$4.95 base charge + $70.44 energy from Direct Energy + $70.23 CenterPoint delivery.
That's about $13.18 less than the same usage at the Texas average price of 15.88¢.
The math uses Direct Energy's September 30, 2026 fact label for Houston: a 7.0444¢ energy rate, a $4.95 monthly base charge, and CenterPoint's delivery charges. Taxes are extra. Not in Houston? See what Oncor charges in Dallas-Fort Worth, or price any plan with our plan cost calculator.
What does Direct Energy charge in 2026?
Its cheapest plain plan, Auto Pay Texas 12, costs about 14.6¢ per kWh at 1,000 kWh in Houston. That's about $146 a month with delivery, before taxes, and below the Texas average of 15.88¢. The catch: you must sign up online and pay by autopay.
Simplest 12-month plans in Houston from each company's fact label. Texas average: EIA, July 2026, all utilities.
From the plan's fact label for the CenterPoint area, dated September 30, 2026. Prices include delivery but not taxes. The price per kWh drops as you use more, because the $4.95 base charge is spread out.
- Direct Energy energy charge (7.0444¢ per kWh)$70.44
- CenterPoint delivery, passed through to you$70.23
- Direct Energy base charge$4.95
Before taxes. Delivery is the same on every Houston plan. See what CenterPoint charges.
How many complaints does Direct Energy get, and why the F?
Texans filed 106 complaints about Direct Energy with the state from April through September 2026. After adjusting for size, the state rates it 4 of 5, the second-best group. The BBB tells a harsher story: an F.
The state sorts every provider into five equal groups by complaints per 1,000 customers. TXU is in the top group, 5 of 5.
Direct Energy beats most providers on complaints per customer. Only the top group, which includes TXU, does better.
The BBB says Direct Energy failed to fix the cause of a pattern of complaints and didn't answer one complaint. That F costs it all 5 BBB points.
What fees does Direct Energy charge, and how do I cancel?
Leaving the 12-month plan early costs $150, but you pay nothing if you move. The bigger surprise is the extra fees: four of them, and two hit at the same time if you fall behind.
- No arbitration clause and no class-action waiver.
- No cancel fee if you move and show proof.
- Three warnings before your contract ends, the last at least 14 days out.
- Neighbor to Neighbor, its own bill-help fund for customers.
- Four extra fees beyond late and returned payment.
- Only the legal 3-day window to cancel free.
- If you don't pick a new plan, you roll onto a variable rate.
- You may need a deposit, based on your credit.
Changed your mind? If you switched to Direct Energy from another company, you can cancel within three federal business days of getting your terms, with no fee. Behind on a bill? Ask about its payment plans and Neighbor to Neighbor, or see help paying your electric bill.
Has Direct Energy been fined?
Yes. In the last 10 years, the state approved one penalty: a $70,000 settlement in 2017. A bigger $220,000 penalty from 2015 is now more than 10 years old, so our method no longer counts it.
Same owner, but different plans, prices and records. Direct Energy also sells under the First Choice Power and Bounce Energy names.
- Texas opens to shopping. The BBB opens a file on the company that's now Direct Energy, then serving as CPL Retail Energy and WTU Retail Energy.
- A $220,000 PUCT penalty over prepaid-plan disconnections becomes final (Docket 44833). It's now older than 10 years, so it doesn't count.
- Direct agrees to a $70,000 settlement over alleged customer-protection violations (Docket 47362). It counts: −4 points.
- NRG Energy buys Direct Energy, joining Reliant, Green Mountain and Cirro.
How we checked: we searched the state's case files and enforcement reports for Direct Energy and the Texas Attorney General's actions. We found no Attorney General lawsuit. One $250,000 settlement sometimes linked to NRG in 2024 was paid by a different NRG company, Cirro Energy, so it doesn't count here.
Direct Energy vs. TXU Energy
It's close: TXU scores 80 and Direct Energy 78. TXU wins on complaints, the BBB and a 60-day free-cancel window. Direct wins on price, renewable share and no arbitration clause.
Complaint counts aren't adjusted for company size; the state's rating is. TXU figures come from our TXU Energy review.
Keep readingRead our full TXU Energy reviewWhat is Direct Energy's phone number?
Call 1-888-305-3828. Its fact label lists the line as open 24 hours a day, 7 days a week. For a power outage, call your utility instead. Direct Energy sells the power, but it doesn't own the lines.
Power out? Call the company that owns your lines
Learn more in our power outage guide.
Direct Energy questions, answered
Is Direct Energy a good electricity provider?
Mostly, yes. Direct Energy scores 78 out of 100 on our public-records scorecard, which we rate good. It earns strong marks for price, time in business and the state's complaint rating, 4 of 5, and its contract has no arbitration clause. It loses points for an F at the BBB, four extra fees and one state penalty in 2017.
Who owns Direct Energy?
NRG Energy, a big public power company, has owned Direct Energy since 2021. NRG also owns Reliant, Green Mountain and Cirro in Texas. Direct Energy's Texas business goes back to 2002, when it served customers as CPL Retail Energy and WTU Retail Energy.
How much does Direct Energy charge?
Its Auto Pay Texas 12 plan costs about 14.6¢ per kWh at 1,000 kWh in Houston, or about $146 a month with delivery, before taxes. That's below the 15.88¢ Texas average. You pay a 7.0444¢ energy rate plus a $4.95 monthly base charge, and the plan requires autopay.
What is Direct Energy's cancellation fee?
$150 on its 12-month plan. Direct Energy waives it if you move and show proof, like a forwarding address. If you switched from another company, you can also cancel within three federal business days of getting your terms, with no fee.
Does Direct Energy's contract force arbitration?
No. Its Texas home contract has no arbitration clause and no class-action waiver, so you keep your right to take a dispute to court. That's better than some big Texas providers, including TXU.
Why does Direct Energy have an F at the BBB?
The BBB says Direct Energy failed to fix the cause of a pattern of complaints and didn't respond to one complaint. Our score counts only the letter grade, so the F costs it all 5 BBB points. The state's own complaint rating is much better, at 4 of 5.
How many complaints does Direct Energy get?
Texans filed 106 complaints about Direct Energy with the state from April through September 2026. Adjusted for its size, the state rates it 4 of 5, the second-best group.
Has Direct Energy been fined?
Yes, once in the last 10 years. In 2017, Direct Energy agreed to a $70,000 settlement with state staff (Docket 47362). An earlier $220,000 penalty became final in July 2015, so it's now outside our 10-year window.
What extra fees does Direct Energy charge?
A $30 collection recovery fee for each disconnection notice, a $20 disconnect recovery fee if you miss the disconnect date, up to $4.95 to pay through an agent, and $5 per billing cycle if autopay fails on Auto Pay plans. That's on top of a 5% late fee and a $25 returned-payment fee.
What is Direct Energy's phone number?
Call 1-888-305-3828. Direct Energy's fact label lists it as open 24 hours a day, 7 days a week. For a power outage, call your utility instead, like Oncor at 1-888-313-4747 or CenterPoint at 713-207-2222.
Is Direct Energy better than TXU?
It's close. TXU scores 80 and Direct Energy 78. TXU has a better complaint rating, an A+ at the BBB and 60 days to cancel free. Direct Energy's plain plan costs less, it's more renewable at 22% versus 3%, and its contract has no arbitration clause.
Sources and updates
Sources (11)
- Direct Energy, Electricity Facts Label, Auto Pay Texas 12, CenterPoint (dated September 30, 2026): 15.5¢, 14.6¢ and 14.1¢ per kWh; 7.0444¢ energy charge; $4.95 base charge; $150 cancel fee; $5 autopay breakage fee; 22% renewable; customer service number.
- Direct Energy, Terms of Service, Residential Postpaid (April 2022 version): no arbitration clause or class-action waiver; fees; Neighbor to Neighbor bill help; the 3-day right to cancel; contract-expiration notices; deposits.
- Direct Energy, Terms of Service, Residential Postpaid (July 2023 version): the $30 collection recovery fee and cancellation terms.
- Direct Energy, Texas billing terms: the $30 collection recovery fee, 5% late charge and PUCT certificate No. 10040.
- Public Utility Commission of Texas, Docket 47362 settlement agreement: the $70,000 administrative penalty agreed June 26, 2017.
- Public Utility Commission of Texas, Enforcement activity report, fiscal 2015: Docket 44833, $220,000, final order July 30, 2015.
- EnergyChoiceMatters, NRG-owned retail provider settlement (May 28, 2024): the $255,462 settlement was paid by US Retailers LLC, which does business as Cirro Energy.
- Better Business Bureau, Direct Energy, LP profile: F letter grade and reasons, alternate names and the 2002 file date, checked October 4, 2026.
- Public Utility Commission of Texas, Customer Complaint Statistics: complaint counts, April 1 to September 30, 2026.
- Power to Choose (PUCT), Retail Electric Provider Complaint Scorecard: the 2026 size-adjusted complaint ratings.
- U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Texas average residential price of 15.88¢ per kWh, July 2026.
Changelog · last updated October 4, 2026 · 1 update
- October 4, 2026: Review published with Direct Energy’s score of 78/100, its September 30, 2026 Houston fact label, a cost calculator and its full fee list.
How to cite this page: The Day Company, "Is Direct Energy a good electricity company? Our 2026 review", updated October 4, 2026, https://theday.company/tx/direct-energy-review.
Scores use The Day Company’s public-records method, applied the same way to every provider. Prices are from Direct Energy’s fact labels and include delivery but not taxes; plan prices change often, so check the current fact label before you sign. Direct Energy is owned by NRG Energy. The Day Company is not affiliated with Direct Energy, NRG or any electric company, and no company pays for placement or scores.