Direct Energy Plans, Rates and Reviews

Direct Energy provides electricity and natural gas across the U.S. and Canada, with its services available in Connecticut, Delaware, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and Washington, D.C. 

While it doesn’t offer the cheapest energy rates in Texas, Direct Energy offers a variety of energy plans for residential and commercial customers, including fixed-rate, renewable energy and variable-rate plans. A well-established light company, Direct Energy earned a 4.6 out of 5 stars in our review of dozens of energy providers. 

In Texas, Direct Energy offers service in Dallas, Fort Worth, Houston, and Lubbock. Keep in mind that Direct Energy is a Retail Energy Provider, so they do not handle the delivery of electricity, which is the responsibility of the local utility company. 

Read on to see Direct Energy’s plan offerings. We’ll also discuss how to sign up for its services and how it stacks up against other top light companies in Texas.

Direct Energy Plans

Direct Energy offers six plan types, with contract lengths of 12, 18, 24, or 36 months. It also offers a month-to-month, variable-rate plan. Our top pick is the Live Brighter 12 plan from Direct Energy. This fixed-rate plan has steady rates for 12 months and a discount when you enroll in autopay. Without bill credits or time-of-use restrictions, you can easily predict your monthly bills based on your typical usage.

Here are Direct Energy’s plan options and rates:

Plans reflect rates for the Houston ZIP code 77077 for a home using 1,000 kWh per month. Rates are accurate as of April 2025.

Our Thoughts on Direct Energy

Direct Energy, which has been in business for 39 years, is a popular provider in Texas. According to our recent survey data, Direct Energy received an impressive 4.6 out of 5 rating, surpassing the Texas average of 4.5. The company scored highest in customer service and customer retention, indicating a high level of overall satisfaction among our survey respondents.

However, there are areas where the company could improve, notably in billing transparency and the online experience, which earned lower scores of 3.3 and 3.7, respectively. These fell short of the state average of 3.6 and 4.0. When compared to other highly rated energy providers in Texas, Direct Energy holds its ground, but some of its competitors, including TXU Energy and Reliant Energy, score slightly better. 

Despite these drawbacks, according to our survey, the majority of Direct Energy customers said they definitely won’t switch providers when their contract expires. Overall, while Direct Energy is a strong choice for customers, if you do sign up for one of their plans, you may find the lack of transparency or online experience frustrating. 

Direct Energy Reviews

Direct Energy is a popular choice for many customers in Texas due to its long-standing reputation and its variety of plan options. Customers often highlight the perks of flexible plans, such as discounted rates for autopay and the ability to customize their energy plan to fit their needs. 

Survey respondents shared these views, with some saying, “They were the most affordable according to current finances,” and another saying, “It seemed to have the least amount of gimmicks and a flat rate listed.” 

However, some customers report frustration with hidden fees, the hassle of switching, and issues with billing accuracy. 

As one survey respondent explained, “I’ve been with the same company for many years, and I don’t know that there would be much of a difference with another company.” Another customer added, “I don’t really like change and the hassle of switching.”  

Unfortunately, Direct Energy has an F rating from the Better Business Bureau (BBB) and doesn’t have BBB accreditation. The company averages one star on both Consumer Affairs and Yelp. On Google Reviews, Direct Energy has a 4.1 out of 5 stars from more than 1,500 reviews.

Pros and Cons

Direct Energy vs. the Competition

Direct Energy scores in between popular providers, sitting slightly lower than TXU Energy and tying with Gexa Energy. Use the following table to compare providers and recommended plans.

Where Is Direct Energy Available?

Direct Energy offers residential and commercial energy in all six transmission and distribution utility (TDU) service areas in deregulated areas of Texas.

Who Should Pick Direct Energy?

As noted above, Direct Energy offers customers in Texas a variety of plan types and durations. From straightforward fixed-rate plans to clean energy perks, such as solar buyback plans, this NRG subsidiary offers a range of plan types.

Whether you’re new to the state or just looking for an environmentally friendly option, Direct Energy is worth considering. See if you fall into one of the categories below.

The Straightforward Shopper

Want competitive rates with a simple, straightfroward plan? Our research indicates that Direct Energy’s Live Brighter 12 plan can yield predictable monthly bills. It’s a 12-month fixed-rate plan that offers a discount if you sign up for autopay. It also doesn’t come with any gimmicks like bill credits or time-of-use discounts, so you can rest easy knowing that your monthly bill won’t fluctuate much.

Green Energy Lover

If you’re looking to support renewable energy sources, Direct Energy’s green energy plans may appeal to you. The company offers electricity plans powered by renewable energy sources, such as solar energy. Its Green Texas plans offer 100% green energy. For homeowners who have solar panels, it also offers its Solar Unlimited plans, which provide a reasonable solar buyback rate. However, other light companies, such as TXU Energy or Green Mountain Energy, may offer more competitive solar export rates.

The Night Owl

If you’re a night owl, picking one of Direct Energy’s Twelve Power on Us plans — a free energy plan — may make sense. In these time-of-use plans, the company covers the cost of electricity from 9 p.m. to 9 a.m. If you can shift the bulk of your usage to nighttime hours, you may be able to save on your monthly bill. However, we don’t typically recommend this plan type, as providers often charge very high rates during the paid time periods, which can offset any potential savings. 

Historically High Electric Bills

If you’ve struggled with expensive monthly electricity bills in the past, Direct Energy’s fixed-rate plans may be the way to go. With fixed-rate pricing, you can avoid fluctuations in energy prices that can occur with variable-rate plans, which may help reduce your overall bill.

Direct Energy’s Electricity Facts Label

The electricity facts label (EFL) is an important document detailing your energy plan. It includes your rate, base charges, TDU fees and other information that can help you avoid surprises on your bill. Here’s an example of the EFL for Direct Energy’s Live Brighter 12 plan:

Notice the difference in cost between the energy charge and the average price per kWh. The average price includes your base charge, energy charge and TDU delivery fees, all at set usage levels. We captured this EFL on January 16, 2025.

• Average price per kWh: This is the advertised rate at set kilowatt-hour usage levels.
• Average price per kWh with discount: This is the discounted advertised rate that applies when you enroll in AutoPay. Both of these rates only apply if you manage to use precisely the level of kWh displayed.
• Base charge: A flat monthly fee from Direct Energy for providing electricity services.
• Energy charge: This fee is the actual rate you’ll pay regardless of usage levels.
• TDU delivery charges: These are fees for delivering electricity to your home, set by your utility company and passed through without markup.
• Type of product: Displays if the plan has fixed or variable rates.
• Contract term: This is the length of your contract, typically 12, 24 or 36 months.
• Early termination fee (ETF): The ETF is a fee you may owe if you cancel your plan before the contract ends.
• Renewable content: This section details how much of your energy comes from green energy sources, such as wind or solar.
• Other disclosures: This section explains how your price might change during the contract. For fixed-rate plans, your energy rate stays the same, but TDU fees can vary.

What Is The Best Way To Contact Direct Energy?

Direct Energy offers 24/7 customer service. You can call the number below or send a message on Direct’s website.

• Current customers: Call 888-305-3828
• New customers: Call 855-461-1926
• Website: Send a message online
• Outage reporting: Contact your utility company during an outage. They are responsible for maintaining lines and infrastructure.

Moving or Transferring Service with Direct Energy

You can transfer your Direct Energy service to your new address, as long as it’s also in a deregulated part of Texas. Simply contact customer support, provide the address for where you want to transfer service and give them your move-in date. You can switch energy providers or select another Direct Energy plan without paying cancellation fees if your new address is outside Direct’s service area or your plan isn’t available there.

Final Take: Direct Energy Charges High Rates But Offers Many Perks

Direct Energy is a reliable option due to its long history in the deregulated market, a wide range of plans and solid customer satisfaction scores. Although it doesn’t offer the cheapest electricity rates in Texas, its prices are commensurate with those of other top companies, such as Reliant Energy and Green Mountain Energy. Direct also offers a range of perks and incentives that some Texans may find enticing, such as a free Amazon Prime subscription, discounted times of use and solar buyback plans.

Frequently Asked Questions About Direct Energy

Will Direct Energy charge me a cancellation fee?

You’ll likely owe a cancellation fee if you terminate your plan before your contract period ends. You can determine the cost by reviewing your plan’s EFL. You can avoid any ETFs if you cancel your energy plan because you’re moving outside of Direct Energy’s service area.

Do the Direct Energy rates shown include everything?

Direct Energy’s advertised rates typically include the energy charge, base charge and TDU delivery fees. However, they may also assume qualification for a usage or time-based rate discount that only applies to a set usage level. These advertised rates also typically don’t include any state or local taxes. We recommend reviewing a plan’s EFL to spot any gimmicky discounts or hidden fees before enrolling in an energy plan, even if it advertises some of the best rates.

Does Direct Energy run a credit check?

Yes, Direct Energy runs a soft credit check to determine if you owe a deposit to start your service. Some electric companies will require a deposit if you have a low credit score or a history of late payments. The credit check won’t impact your credit score, and you’ll get your deposit back after 12 months of on-time payments.

What is the best Direct Energy electricity plan?

We recommend the Live Brighter 12 from Direct Energy because our research indicates that it offers predictable bills at a lower rate than other Direct Energy plans. The plan includes a .5 cent discount per kWh when you use autopay, but its rates are fair even without the discount.

How We Rate and Review Texas Electricity Companies

With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you're moving to Texas or looking to switch providers.

We've researched dozens of Texas electricity providers and scored them out of 5 stars based on results from our 2025 energy survey of 1,600 Texans, scoring providers on customer satisfaction, experience and retention. Here's how these core factors weighed into our ratings:

• Customer satisfaction (30%)
• Customer retention (30%)
• Online experience (20%)
• Customer experience (20%)