Direct Energy Contract Changes

    Direct Energy Contract Changes

    The news regarding Direct Energy changing their water heater contracts on their customers is accurate and incredible unfair. I will talk about the changes and what it means for you.

    1. Firstly and foremost Direct Energy has changed their contract so that if you want to cancel or get out of your water heating contract you will be subject to a cancellation fee from $100 and up.
    2. Direct Energy has to honour the contract you signed but you have to call them and say that you don’t want the new contract and would rather remain on the old one (with no cancellation fees).
    3. If you don’t call and stipulate your preference you will automatically be moved to the new contract with the cancellation fees.
    4. You need to call or email before April 2nd 2012.   1-866-202-1120 or

    If you’re a Direct Energy water heater client you will probably be making the call, I would also suggest at the same time to ask what your buyout would currently cost you.  If your tank is between 5-10 years old the buyout is relatively cheap and it’s probably not a bad idea to consider it.  If the tank is less than 5 year it will probably be relatively expensive to buyout.

    Tanks 10 Years and Older

    Buy it out; it’s probably only a few hundred dollars at most.  But, the tank is getting old and likely quite inefficient. A 40 or 50 gallon tank has a lifespan of 12-15 years at best and loses 2% efficiency per year gradually but consistently.  Your conventional tank starts life at around 55% efficiency but scale and lime build-up really starts to reduce its heating efficiency over time. If you buy the old Direct Energy water tank out I would suggest you start budgeting for a new one as soon as possible. 

    Tankless Upgrade

    This site deals with all types of water heaters in general but we feel that a tankless is an ideal solution is a lot of residential applications (not all though).  A tankless will cost more, but it does have a lifespan of 20 plus years.  In addition a tankless water heater is designed to be cleaned so scale and lime build-up don’t reduce the efficiency rating over time.  A condensing tankless efficiency is rated between 94% and 98% depending on brand.  Again, they won’t be right for every home but they is a lot of situations a tankless does make a lot of sense.  Explore this as option for your home.


    Renting a water heater is strange, most Provinces and States don’t have anything like what we have here in Ontario.  When big players like Direct Energy apply such overarching, unfair changes to customers it gets people talking.  I would suggest that every home owner owns their water heater or tankless water heater and stops renting.  You don’t rent your stove, fridge, or other appliances, what makes the water heater so different? Buyout your Direct Energy contracts and own the water heater in your basement.  Have Direct Energy remove their water heater and hire a certified contractor to install a new one you own outright.  Move up to a tankless and own that water heater for 20 plus years with high efficiency and reduced gas bills.  Do whatever you need to do to stop paying a monthly water heater fee.

    Author: administrator

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