Thursday, June 12, 2008

Beware Direct Energy Protection Plans - they cheat

We recently discovered that Direct Energy marks up their parts by 400% over retail cost. They also charge a "diagnostic fee" on top of their labour charges. Since their protection plan only covers a maximum of $1000 per year this price gouging makes the plan close to worthless. This type of price markup done under the covers of an insurance plan is illegal but there doesn't seem to be any way to stop them. Complaints - they could care less.

My advice: Take the money you would pay for a protection plan and put it in a savings account. Find a local company that will service your heating equipment for a fair price and pay them on an as-needed basis and you'll probably do just fine. If your furnace is old consider getting a new one which will have a 5 year protection plan built-in and will likely save you energy by being more efficient.

For more complaints about them try this: http://www.ellenroseman.com/?p=120

Or this: http://www.ontariotenants.ca/electricity/articles/2004/ch304e16.phtml

3 comments:

Anonymous said...

Direct Energy came banging on my apartment door this late afternoon, after getting by the main security door.Trespassing first of all, and then waving I.D. tags and literature at me, none of which they wanted to leave."Just sign here for savings!" they stated."The newest way to save on your electricity bill!"
What a bunch of high-handed crap. I'm glad I said "I'll check the web, thank you", and found the real truth.

John Gross said...

When I bought my new house, I carried over a furnace protection plan from my old house, which was useless because I had a new furnace at the new house. I was then persuaded to extend my heating protection plan to include my air conditioner. But I discovered last month that that "upgrade" eliminated my annual maintenance cleaning! So I paid more to get less.

I have since dropped down to the annual maintenance plan, which covers only the cleaning, for slightly less than the cost of a cleaning once a year.

PS: My horror story with Direct Energy can be found here:
http://www.ellenroseman.com/?p=120
(search for John Gross a few times)

Anonymous said...

they had me sign up by saying there are no contracts no fee and they charged me 50$ as there usage charge plus whn I called in to cancel they told me there would be 800$ cancellation fee