Direct Energy LP is a North American retailer of energy and energy services. The company was founded in Toronto in 1986 and now has more than four million customers in Canada and the United States. Direct Energy is a subsidiary of NRG Energy.
History
Direct Energy was founded in Toronto in 1986, as a competitive energy retailer. In 2000, the company was acquired by Centrica, the UK-based parent of British energy retailer British Gas.
In 2010, Direct Energy acquired Clockwork Home Services making Direct Energy the largest energy and home services retailer in North America. Clockwork has three brands: One Hour Air Conditioning & Heating, Benjamin Franklin Plumbing and Mister Sparky, which specialize in plumbing, electrical and air-conditioning and heating and services, all of which have earned the Diamond Certified Award for excellent service.
Direct Energy acquired a number of upstream assets, including gas reserves and power generation facilities. These include: Quintana Minerals Resources, Bastrop Energy Center, Frontera Energy Center, Paris Energy Center, and Rockyview Energy Inc. Direct Energy has entered into long-term power purchase agreements for 813 MW of electricity from five wind farms in Texas.
Direct Energy owns and operates approximately 4,600 natural gas wells in Alberta, most recently acquiring natural gas assets from Suncor Energy and Shell Canada.
The company’s new strategy calls for increased investment in North America, specifically to grow its upstream asset cover to 35-40%; it also plans to grow its downstream businesses in its core markets of Texas, US North East and Canada. Chris Weston became President & CEO of Direct Energy on July 1, 2009 following the retirement of Deryk King.
Direct Energy announced in January 2012 that it will move its corporate headquarters from Toronto to Houston within the next 12 to 18 months. The headquarters will be in the Greenway Plaza location where the company's residential energy and upstream business are now based.
In 2012, Iberdrola USA sold its energy services companies, Energetix and NYSEG Solutions, to Direct Energy.
In early 2014, Direct Energy partnered with Nest Labs to create a plan that would include a smart thermostat. The Nest smart thermostat will increase home owners and renters ability to monitor the temperature of their homes for increased energy efficiency. In August 2014, Direct Energy increased their ability to provide services that increase the efficiency of the American and Canadian home when its announced its partnership with SmartThings. A SmartThing's Hub allows the user to connect with smart device, secure the home with sensors, and control certain electrical devices.
In November 2015, the company acquired Israeli startup Panoramic Power, a manufacturer of circuit level wireless sensors that collect energy information, for $60M.
In July 2020, NRG Energy and Centrica entered an agreement under which NRG would acquire Direct Energy for $3.625 billion in an all-cash transaction. The merge was completed on January 5, 2021.
Products and services
Direct Energy’s U.S. operations span 46 states and the District of Columbia including Texas, Ohio, Michigan, Illinois, Pennsylvania, California, Connecticut, Maryland, Rhode Island, Maine, New York, New Jersey, Delaware, Massachusetts, Florida, North Carolina, Kentucky, Indiana, Alabama, Oklahoma and Virginia. While not providing services to residential customers and businesses in Oklahoma, Direct Energy has established an Operations Center in Tulsa. In Canada, Direct Energy has operations in Ontario, Alberta, British Columbia, Manitoba, Quebec, Saskatchewan, Nova Scotia, Prince Edward Island, New Brunswick, and Newfoundland and Labrador.
For residential customers and small business, Direct Energy offers fixed price electricity and gas plans, as an alternative to the local utility or in competition with the local competitive energy providers. In Texas, Direct Energy offers a pre-paid electricity plan, Power-To-Go. In Ontario, Direct Energy rents water heaters to around 600,000 residential homeowners. Through its services division, Direct Energy installs and services heating, ventilating and air conditioning equipment. It also can perform energy retrofits and other energy management projects at larger facilities. Direct Energy’s Home and Business Services division employs over 1,400 technicians providing residential customers with heating, ventilation and air conditioner (HVAC), plumbing, home improvements, water heater and electrical appliance services.