How does Direct Energy score?
Direct Energy earns 70 out of 100. We rate that "good," at the bottom of the range. It gets full marks for time in business and strong marks for price and complaints. It loses the most points for two state penalties, its F grade at the BBB and its extra fees.
- October 4, 2026: 78 at launch.
- October 5, 2026: 70. We added a $250,000 PUCT settlement from December 2020 (Docket 51277) that our first review missed.
Coming up: its 2017 settlement leaves our 10-year window in 2027. That would lift the score to 74 if nothing else changes. We re-check prices every month and re-score when the state posts new complaint data or a penalty order, or the BBB grade changes.
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, as of October 13 to 16, 2026. See all 25 ranked side by side.
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 | 8 / 20 | Two qualifying penalties in 10 years: a $70,000 settlement approved by the PUCT in 2017 (Docket 47362), under $100,000 (−4), and a $250,000 settlement approved in December 2020 that also covered its First Choice Power and Bounce Energy brands (Docket 51277), $100,000 to $499,999 (−8). 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?
Move the slider to the kWh on your last bill to see what Direct Energy would really cost you in Houston. Low users, take note: below about 430 kWh a month, the $4.95 base charge pushes this plan above the Texas average. Use more than that and it comes in under.
$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¢.
Partner toolWe may earn a fee if you sign up. It never changes our scores.
We built this from Direct Energy’s Houston fact label dated September 30, 2026: a 7.0444¢ energy rate and a $4.95 monthly base charge, plus CenterPoint’s delivery charges. Taxes come on top. Live in Dallas–Fort Worth? Check Oncor’s delivery charges, compare Dallas plan prices, or run any plan through 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 works out to about $146 a month with delivery, before taxes, which beats the 15.88¢ Texas average. 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
Prices are before taxes. CenterPoint’s delivery charge is identical on every Houston plan: see what CenterPoint charges or compare Houston plans.
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. Once the state adjusts for its size, Direct lands in the second-best group, 4 of 5. The BBB tells a harsher story: an F.
To set that rating, the state ranks providers by complaints per 1,000 customers and splits them into five equal groups. For comparison, TXU sits in the best group, 5 of 5.
Direct Energy beats most providers on complaints per customer. Only the top group, wihch 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?
Break the 12-month plan early and you owe $150, unless you’re moving, which gets it waived. The bigger surprise is the extra fees: four of them, and two hit at the same time if you fall behind.
- You keep your right to sue: no arbitration clause and no class-action waiver.
- Moving? Show proof and the cancel fee goes away.
- 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.
- Free cancellation only in the 3 days the law requires.
- Let the contract lapse and Direct moves you to a variable rate. What to do before it ends.
- A deposit may be required, depending on your credit. Ways to skip it.
Changed your mind? Switching from another company gives you three federal business days after you get your terms to cancel at no cost. Behind on a bill? Ask about its payment plans and Neighbor to Neighbor, or see help paying your electric bill.
Keep readingDirect ties for eighth of 25. See the full rankingHas Direct Energy been fined?
Yes. In the last 10 years, the state approved two penalties: a $70,000 settlement in 2017 and a $250,000 settlement in 2020. A $220,000 penalty from 2015 is now more than 10 years old, so our method no longer counts it.
NRG owns all four, yet each brand has its own plans, prices and record. 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.
- The PUCT approves a $250,000 settlement with Direct Energy that also covered its First Choice Power and Bounce Energy brands (Docket 51277). It counts: −8 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. A separate $250,000 settlement in 2024 was paid by a different NRG company, Cirro Energy, so it doesn't count here.
Direct Energy vs. TXU Energy
TXU leads, 80 to 70. TXU wins on complaints, the BBB, fewer state penalties and a 60-day free-cancel window. Direct wins on price, renewable share and no arbitration clause.
Raw complaint counts ignore company size, but the state’s rating accounts for it. The TXU numbers 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.
Does Direct Energy buy back solar power?
Yes. Direct Solar Unlimited 12 credits your extra power at 5.3¢ per kWh in Dallas and 5.9¢ in Houston. That’s about half the energy charge you pay.
Source: Direct Energy’s terms of service and its fact labels dated September 30, 2026 (Houston) and October 4, 2026 (Dallas). Buyback credits can change at any time, so check the current label before you sign up.
Energy charge only, from Direct Energy’s fact labels. Delivery and base charges are extra.
Your extra kWh times Direct Energy’s credit for your area.
Partner toolWe may earn a fee if you sign up. It never changes our scores.
- No cap, according to the plan page. If you switch to another Direct Energy plan, the page says your balance carries over.
- Its terms say leftover credit is refunded after your service ends, once anything you owe is paid.
- Systems of 50 kW or less, an interconnection agreement and a two-way meter.
- $9.95 base charge and a $150 cancel fee. The plan page says it’s only for Vivint Solar customers; that limit isn’t on the fact label.
Direct Energy questions, answered
Is Direct Energy a good electricity provider?
Mostly, yes. Its 70 out of 100 on our public-records scorecard counts as 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 two state penalties, in 2017 and 2020.
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. New customers who switched from another company also get three federal business days after receiving their terms to cancel free.
Does Direct Energy's contract force arbitration?
No. Direct’s Texas home contract skips both forced arbitration and a class-action waiver, so a dispute can still go 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. Size-adjusted, that earns a 4 of 5 from the state, one step below the top group.
Has Direct Energy been fined?
Yes, twice in the last 10 years. In 2017, Direct Energy agreed to a $70,000 settlement with state staff (Docket 47362), and in 2020 to a $250,000 settlement that also covered its First Choice Power and Bounce Energy brands (Docket 51277). 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?
Not on our score. TXU scores 80 and Direct Energy 70. TXU has a better complaint rating, an A+ at the BBB, fewer state penalties 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.
Does Direct Energy have a solar buyback plan?
Yes. Direct Solar Unlimited 12 credits extra solar power at 5.3¢ per kWh in Dallas and 5.9¢ in Houston, about half the energy charge, even though its plan page says the credit matches the energy rate. Credits have no cap, and any balance left when you leave is paid back to you. This isn’t part of our score.
What do you want to do next?
Every Texas guide, by topic
Browse every guide on the Texas hub. Or see every state's average price on our price map.
Sources and updates
Sources (15)
- 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, Docket 51277 order: the agreed $250,000 administrative penalty covering Direct Energy, First Choice Power and Bounce Energy, 2020.
- 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.
- Direct Energy, Direct Solar Unlimited 12 fact label, Dallas, October 4, 2026.
- Direct Energy, Direct Solar Unlimited 12 fact label, Houston (D1F00184220582G), September 30, 2026.
- Direct Energy, Residential terms of service: solar sell-back terms.
Changelog · last updated October 16, 2026 · 7 updates
- October 16, 2026: Updated the chart and every count to the 25 companies we now score; Direct Energy now ties for eighth of 25. The solar note now covers the 10 companies whose solar plans we compared on October 5. An old link now goes straight to its current address. Direct Energy’s score is unchanged. We also added our new city guides, four new company reviews and the Smart Meter Texas guide to the guide map.
- October 13, 2026: Added a quick decision box, yearly money-at-stake lines in the tools and next-step links. Added a score history box. Rewrote parts of the review in our own words, reworded our trust note so it stays true if we add partner links, and linked our city rate, contract-ending and no-deposit guides plus a full list of Texas guides. No figures or scores changed.
- October 12, 2026: Moved to theday.company/tx/direct-energy-reviews; the old address forwards here. Updated links to our renamed Texas guides. No figures or scores changed.
- October 5, 2026 (solar update): Added a solar buyback section: every Direct Energy solar plan and its credit in Dallas and Houston, a calculator for what your extra power earns, and a chart comparing credits with what you pay. Each company in the 10-company chart now links to its review. Direct Energy’s score is unchanged.
- October 5, 2026 (update): Updated the comparison chart to all 10 companies we’ve scored, including Gexa’s new 74 and Green Mountain’s new 70. Direct’s score is unchanged.
- October 5, 2026: Score corrected from 78 to 70. We added a $250,000 PUCT settlement from December 2020 (Docket 51277) that our first review missed, which lowers fines and penalties from 16 to 8 of 20.
- 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 16, 2026, https://theday.company/tx/direct-energy-reviews.
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.