BBB Business Review

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This business is not BBB accredited.

Direct Energy, LP

Find a Location

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:

  • The business's BBB file information is being reviewed and/or updated.

Customer Complaints Summary Read complaint details

581 complaints closed with BBB in last 3 years | 162 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 108
Billing/Collection Issues 219
Delivery Issues 3
Guarantee/Warranty Issues 3
Problems with Product/Service 248
Total Closed Complaints 581

Additional Complaint Information

Direct Energy now has a direct “concierge” line dedicated to Door to Door concerns.  You will speak with trained agents specifically focused on resolving any issues, concerns or complaints over a recent sale. They can be reached at: 844-878-4411, Monday - Friday between the hours of: 7:30am - 8:00pm.


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.


Direct Energy has provide a rebuttal to BBB statements contained above:

Each month Direct Energy's door-to-door sales representatives enroll as many as 20,000 new customers across North America. The Better Business Bureau typically receives fewer than six complaints each month alleging improper sales practices on the part of our sales agents. Direct Energy takes each complaint and fully investigates.     Direct Energy performs background checks for all sales agents, and third-party verifications of all sales in states where it is required. In addition, we conduct regular quality assurance audits, and post-sale assessment audits are performed. 

If either a current or prospective customer has had an unfavorable experience with Direct Energy or one of our sales representatives, via any of our sales channels, we strongly encourage them to contact us at the phone numbers provided below. We ask that they provide
 us with as much information as possible about the sale in question.

DE Residential Texas – 1-888-305-3828
DE Residential (other states) – 1-888-566-9988

Customer Reviews Summary Read customer reviews

8 Customer Reviews on Direct Energy, LP
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 8
Total Customer Reviews 8

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 Department of Licensing & Regulation
920 Colorado, Austin TX 78701
Phone Number: (800) 803-9202
Fax Number: (512) 475-2871

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.