Tyler D.
Beware: False claim of cancellation fee on legal 14-day provider switch
Someone from Direct Energy (DE) called my parents claiming they owed a cancellation fee on the day we started service with a new Retail Electricity Provider (REP), despite our switch occurring within the 14-day window of contract expiration. We were only with DE because they bought out accounts from our previous provider. I find it very hard to believe that someone from a REP is not aware of this Texas legal right, especially since this came from a call instead of a letter or bill. My parents are elderly, and I can't help but wonder whether tactics like this specifically target unsuspecting seniors who may be unaware of their legal rights. What's even more surprising is DE actually sent us an email almost 3 weeks prior, notifying that our contract would be expiring soon and provided the renewal offer. Further, in the excerpt below, they stated we could cancel as of the date of the email and would not be charged a cancellation fee: "The cancellation fee for your current plan no longer applies. (Although the cancellation fee for your current plan was scheduled to remain applicable until at least 14 days before your first meter read on or after x/xx/2026, Direct Energy has waived this fee as of the date of this notice.)" Clearly, they provided written documentation that any cancellation fee would be waived immediately. So now we have shady behavior AND incompetence. Perfect combo. Stay away from this company.


