Direct Energy cheated my wife into signing fixed enegy contract


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AshwaniG   
Member since: Jul 04
Posts: 1484
Location: Convinient

Post ID: #PID Posted on: 27-08-08 10:58:26

Here is another catch in fixed gas prices :
If you sell your house , the contract cannot be transfered to new owner .
The fix price is only for the amount of gas you use . That does not cover delivery charges which is a greater portion of your bill anyway .


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pratickm   
Member since: Feb 04
Posts: 2831
Location: Toronto

Post ID: #PID Posted on: 27-08-08 11:21:54

Quote:
Originally posted by AshwaniG
Here is another catch in fixed gas prices :
If you sell your house , the contract cannot be transfered to new owner .
The fix price is only for the amount of gas you use . That does not cover delivery charges which is a greater portion of your bill anyway .

Correct.
Since the time our local hydro switched to "smart" meters, our consumption charges have come down significantly.
However, that has not made any perceptible difference in our total bill because the majority of charges are delivery, debt write off, etc.


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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

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dudewheresmycar   
Member since: Jan 07
Posts: 980
Location:

Post ID: #PID Posted on: 27-08-08 12:14:15

I think the gas prices will factor in during winters when consumption is more..

I am amazed at the delivery charges ..

If we add gas, elec, and water delivery charges probably works out to 45$ pm

Man thats a lot..




Quote:
Originally posted by AshwaniG

Here is another catch in fixed gas prices :
If you sell your house , the contract cannot be transfered to new owner .
The fix price is only for the amount of gas you use . That does not cover delivery charges which is a greater portion of your bill anyway .



happy2004   
Member since: Jun 04
Posts: 176
Location:

Post ID: #PID Posted on: 28-08-08 10:30:10

Hi,

I am in the same boat, though I am renting my apartment and same thing happend. A lady came to my door and told me that I am from Toronto Hydro and would like t o check your electric bill. Then he checked and say everything is ok and we are provid you better rate under UNIVERSERAL POWER. I signed it and confirm it. I was new in this matter and everything happend so fast so could not know the draw backs. Initially one year was okay but now my bill in more almost 25 $ per month with the same utility. It's too late for me to cancellation as they are asking $350 charges for cancelation.

I called them 2-3 times now the rate their are provind me is fixed for 5 years. If I moved then still they can charges me for ?

Thanks in advance



pratickm   
Member since: Feb 04
Posts: 2831
Location: Toronto

Post ID: #PID Posted on: 28-08-08 10:45:29

Quote:
Originally posted by happy2004
I am in the same boat, though I am renting my apartment and same thing happend. A lady came to my door and told me that I am from Toronto Hydro and would like t o check your electric bill. Then he checked and say everything is ok and we are provid you better rate under UNIVERSERAL POWER.

This is a standard trick them all use.
You are under no obligation to show them your bill.

We get these folks almost every day.
I usually tell them that I don't have paper bills, all my bills are online.
Quote:
I called them 2-3 times now the rate their are provind me is fixed for 5 years. If I moved then still they can charges me for ?

Depends on the contract you have.
You can always sell your house to get out of the contract - if you don't have a house, they can't bill you :D

Canceling doesn't make sense, unless free market gas rates fall so drastically that you are better off canceling and buying directly from Union Gas or Enbridge.

BTW, I think in the long run floating rate beats fixed rates.

If I look at my utility bills from last 5 years and compare with the fixed rates being offered over the last few years, floating rates will most likely beat fixed rates averaged out over many years.


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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"


BlueLobster   
Member since: Oct 02
Posts: 3409
Location: Mississauga

Post ID: #PID Posted on: 28-08-08 10:55:33

Do this. Write them a letter. Look up their website and get the name of the the sales VP of the company (if you can't, address it to VP of Sales). Also write the same letter to the Customer complaints division of the company.

Spell our your issues in objectively and in brief, don't write an essay. Also spell our next steps you're going to take if you don't get a response and remedy. (you should take them first to the Better Business bureau, otherwise you should take it to small claims court etc).

I'll bet you you'll get a response at the very least, probably a refund. This thing really is a bad scam, I've had these guys show up at my door as well, saying they're here to confirm our bill and they're nothing more than door to door sales guys who're lying about the purpose of their visit.

I saw an episode about this, where Silverman took this on for a Chinese lady and got her a refund for a few years.


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dudewheresmycar   
Member since: Jan 07
Posts: 980
Location:

Post ID: #PID Posted on: 28-08-08 12:21:24


The Irony of the whole story was , when my wife was looking for marketing jobs when she had just migrated last year we saw some advts from Direct Energy for door to door Sales reps , she went for interview and they explained the deal , she would be dropped off and picked up from some area.. She was supposed to do meter readings and get people to sign contracts.. she would be paid on number of contracts she gets..

I asked her not to take it up as i could not believe any one would even make people stand at their door here..

Now i know how they operate...



Contributors: dudewheresmycar(4) Shimla(2) AshwaniG(2) pratickm(2) Maharaj(1) viggy(1) happy2004(1) rajcanada(1) BlueLobster(1) G13(1)



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