Tuesday, October 19, 2010

F*** You Direct Energy-Buyer Beware

Direct Energy is and energy services company that was founded in 1985. The main service that they provide is a fixed rate on your primary gas. They are no longer taking new customers in Manitoba but they operate in many other provinces and states in North America. A group of students from my advertising class had heard some negative reviews of the company from people we knew. So, we set out to investigate the company and give consumers some information to help them make an informed decision about whether or not to use Direct Energy's services.

We looked into their sales tactics and services, customer satisfaction and ratings. Here is what we found:

Although the Public Utilities Board approves the companies right to sell gas at a fixed rate, the customers we encountered found the company's sales tactics appalling.

One customer, Scott Douglas, 30, signed up five years ago, and when his contract was up this year, he decided not to renew. Direct Energy's door to door representative did not take no for an answer.

"They won't stop coming to my house to try and get me to renew. I have turned them down twice, but they won't take no for an anwer. When I'm at work in the evenings, they come and harass my wife, telling her our rates with Manitoba Hydro are going to 'skyrocket'" he says.

Direct Energy's door to door sales people work on commission. So, it is in their best interest more than yours to make the sale.

We spoke with a former Direct Energy worker, who told us "The training was simple and it took me a day to memorize the pitch and details.."

So, the people coming to your door may not know what they're selling any more than you do.

We found over 50 different complains about the company on the "Complaints Board" (www.complaintsboard.com) and there is even a  website called Fuck You Direct Energy (www.fuckyoudirectenergy.com) devoted to informing the public of why they don't like Direct Energy.

The company has received a total of 441 complaints from consumers in the last 36 months and have received a grade of "F" from the Better Business Bureau.

Customers complain that Direct Energy uses scare tactics, telling them that the price of gas is on the rise and they need to act now. They also say that they are misinformed and led to believe that Direct Energy is their only option for gas services. Check out the websites posted in this blog and see for yourself.

Our advertising group concludes that Direct Energy is a company that would be better to avoid. Luckily here in Manitoba we don't have to worry about it anymore.

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