BBB Business Review

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This business is not BBB accredited.

Direct Energy, LP

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Phone: (888) 305-3828 View Additional Phone Numbers 12 Greenway Plaza, Suite 600, Houston, TX 77046 View Additional Email Addresses View Additional Web Addresses

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This company provides energy solutions and services for both residential and commercial consumers.

BBB Accreditation

This business is not BBB accredited.

Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.

To be accredited by BBB, a business must apply for accreditation and BBB must determine that the business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must pay a fee for accreditation review/monitoring and for support of BBB services to the public.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Based on BBB files, this business has a BBB Rating of No Rating. The reason is as follows:

  • BBB does not have sufficient information to issue a rating on this business.

Customer Complaints Summary Read complaint details

637 complaints closed with BBB in last 3 years | 228 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 120
Billing/Collection Issues 232
Delivery Issues 4
Guarantee/Warranty Issues 3
Problems with Product/Service 278
Total Closed Complaints 637

Additional Complaint Information

The BBB of Houston has received several complaints that exhibit the following pattern:   

According to consumer complaints, it has been alleged, Direct Energy utilizes the services of third party marketers. Some of the complaints received alleged that the door to door salesmen do not properly identify themselves as Direct Energy employees. Instead they are stating that they work for various other energy companies in an attempt to switch consumers without their knowledge. The BBB suggests consumers request identifiers for proof of employment verification.

 Recent disputes also involve increasingly aggressive sales people. Consumers have alleged that these people have repeatedly come to their homes, sometimes up to 3 times daily.  One recent complaint alleges that the sales person actually pushed the consumer's door open.

Recent complaint reflect the fact that senior citizens are being approached by third party salesmen representing Direct Energy.  The consumers in these instances are being asked for their bills but think they are actually talking with the utility as the salesmen are not identifying themselves as with Direct Energy.

Please understand that this company is not an accredited member or registered with the BBB.
However, the BBB processes complaints for both accredited and non accredited businesses. Complaints are reported once they have closed and will remain on the company’s report for 36 months.

A recent dispute alleged that the consumer was instructed to call a call center regarding billing issue, and when called found that call center was in Guatemala.

Recent Fort Worth complaint alleged that door to door salesperson asked for family member referrals and then switched all family members to Direct Energy service without their authorization.

Consumers have alleged in the Toledo Ohio area that a salesperson stated that "Direct Energy" was a preferred provider for Toledo Edison, which consumer stated was not a correct statement.

Consumer in New Jersey has alleged that telephone salesperson posing as Verde Energy switched service to Direct Energy.

Consumers in New Jersey have alleged that salesperson was soliciting at a Senior Citizen complex,  state that they are working for "Delmarva" and that they are actually Direct Energy.  Salesperson was demanding to see consumer's Delmarva bills.

Customer Reviews Summary Read customer reviews

5 Customer Reviews on Direct Energy, LP
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 5
Total Customer Reviews 5

Additional Information

BBB file opened: March 26, 2002 Business started: 01/01/1985 in TX
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Texas Public Utility Commission
1701 N. Congress, Austin TX 78701
Phone Number: 888-782-8477

Type of Entity


Business Management
Mr. Badar Khan, President & CEO Mr. Paul Dobson, Chief Operations Officer Mr. David Draper, Director of TX Commerical Ms. Jennifer Lee, Sr. Manager of Vendor Operations Mr. John Thomas, Sr. Manager of Complaints
Contact Information
Principal: Mr. Badar Khan, President & CEO
Related Businesses
Bounce Energy
Business Category


Alternate Business Names
CPL Retail Energy Energetix, Inc First Choice Power Gateway Energy Gateway Power Services Hess Energy Marketing New Leaf Energy NYSEG Solutions Vectren Source WTU Retail Energy

Many local municipalities, townships, and counties have registration, bonding and/or licensing requirements. The BBB encourages you to check with them as well.


BBB Customer Review Rating plus BBB Rating Overview

BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.