price protection plan natural gas
not until my neighbour questioned me about how much I pay did I really look at my bill -- and realize I pay 42.9 cents/cubic metre for gas, and that my provider was DIRECT ENERGY. I have every bill from the time I bought the house, but no copy of a contract from them. I wondered how I got on Direct Energy. I called them, they said it was verbally accepted by me on the phone back in July 06? They are sending me a CD of the call...in 30 days, and a letter explaining how much cancellation of this 5 yr contract will cost me. She wouldnt tell me over the phone. She did however agree that the price was very high, and she offered me another contract of 5 years at a lower rate 33.9 cents ( as of April 1/09 union gas charges 23.52 cents) so I'm not signing into that either. She warned me that the price of nautral gas was going to rise significantly and I would be better off to accept her 33.9 cent offer so I didnt get stuck paying some high price...hello; I AM paying a high price!! It was a fear tactic.
I dont recall a phone conversation agreeing to anything of the sort but I guess i"ll wait for the cd ( like that's going to help me) I"m upset with my self that I never looked before, or thought to compare rates with what Union gas actually charges. I have a very small house, and live alone, so being it's my first home, I had nothing to compare to monthly as what would be ''outrageous'' I was able to handle the bill monthly so I didnt question it. However; I"m more upset at learning I somehow got locked into a contract of which I have no copy of, simply by a phone call .... I shudder to think how much this has cost me since July 06,... and worse, how much it will continue to cost, as apparently I"m locked in till 2011... STAY AWAY FROM DIRECT ENERGY.... and definatley DONT TALK TO THEM ON THE PHONE!!
****this matter was resolved much to my satisfaction Aug 10 2009.
- Approximate cost of services:
- $2,000.00
- Company Response
Hi,
Thanks very much for letting us know about your concerns. I will direct you to the information below which I am posting on behalf of my colleague, who can assist you:My name is Lynzey and I work at Direct Energy in Public Relations.
At Direct Energy, we vary our offers as market prices change. It sounds like you may be on a flat fixed-price protection plan. The guarantee we offer with flat plans is stability -- customers know what rate they will pay for the term of their contract, and don’t have to deal with the kind of dramatic price fluctuations we’ve seen over the past few years. A flat rate energy plan is a long-term investment in stability; it is typical with a flat plan to experience some periods where the regulated rate is higher, and some periods where the regulated rate is lower than your contract price. Having said that, many customers do save. Since 2004, an average residential customer saved $547 with a Direct Energy natural Gas Price Protection Plan. Customers on these plans also avoided spikes like the one we saw last summer.
Please feel free to contact me directly at lynzey.macrae@directenergy.com and I can look into the details of your account and try to answer any questions you have.
Lynzey