It's Official: Direct Energy has been sold!!!

  

The deal is done. Direct Energy has been sold to NRG Energy Inc, an American company, headquartered in New Jersey. The finalization of the purchase was announced on January 5, in a very low-key notice posted on the NRG Energy website. With such a quiet announcement, we wonder if most of Direct’s customers have been left in the dark about the deal. Why the secrecy and what does this mean for Direct Energy customers?

 

As a Regulated Rate Option (RRO) customer buying electricity or natural gas at AUC government regulated retail prices, your account has also been sold as part of this deal.

 

Why does this matter? In time, more and more Alberta jobs will be leaving the province. We asked the government why they approved the sale of the Alberta government-regulated utility to an American company. Why didn’t they stop it?

 

Direct Energy has a long history of outsourcing and offshoring jobs. Customer Care call center; billing processing and key technical systems people and services have been previously outsourced. Additionally, Direct Energy sold off their Alberta natural gas holdings to a joint partnership including Mercuria (HQ Geneva), Can-China Global Resource Fund (in part, funded by China Exim Bank), and MIE Holdings Corporation (HQ Hong Kong). 

 

Now the profits on the retail sales of the energy to customers who are on the government’s regulated rates will end up being consolidated on the balance sheet of NRG. Hundreds of millions of dollars in investments and jobs have been shipped out of the province by our big utilities.

 

It is time for the Alberta government to explore how it can stop the erosion of the ownership of Alberta’s utility businesses. Direct is not the only utility company guilty of selling off assets and shipping jobs out of the province. ENMAX and ATCO have laid-off workers and sold off sections of their utility business. Heartland Generation Ltd., an affiliate of American investment firm Energy Capital Partners purchased nine of ATCO’s Canadian Utilities Ltd. generation plants which were located in Alberta. The City of Calgary’s District Energy facility will be sold off to Liberty Utilities in 2021, and, as most people know, Alberta’s transmission lines are owned by Berkshire Hathaway Energy.

 

As we head into 2021, it is time for our political leaders at the Provincial and Federal level to join together in a bipartisan mindset focused on protecting Alberta jobs. Recent decisions by the Federal United States Government include revoking the permit for the  Keystone XL pipeline and  a Presidential Executive Order to purchase American made products. We need our political leaders to work together for the benefit of Albertans, and having our province’s major government-regulated rate utility retailer run by an American company does not achieve this goal. In fact, by doing nothing, our politicians are providing a direct benefit to an American corporation, not Albertans. We challenge our political leaders to address  Alberta’s concerns and work together to protect jobs.

 

Dear Premier Kenney and Ms. Notley, promote local businesses and don’t fear the global utilities’ corporate muscle. Jobs and businesses do not have to be sold off to American consortiums. It is time to restructure the Regulated Rate Option (RRO) policies and help educate consumers about their choices. Promote “buy local.”

 

A simple solution might be to make it clear to the big utilities that if they are going to profit on the sale of energy to consumers on the government’s regulated rate, then at a minimum, the utility must operate in the province and bring the jobs that they exported back.  

 A Local Choice

As the COVID-19 pandemic continues to cause business closures across the province, a push for Albertans to shop locally for their goods and services has grown and has never been more critical.

Choosing local independent businesses for your shopping, dining, and other needs has many benefits, including strengthening our local economy, creating jobs and opportunities, giving back to your community, and more.

When you hear the words “shop local,” what comes to mind? We would guess that the majority of our readers would immediately think about farmers’ markets, independent restaurants, or even boutique clothing stores. Did anyone think “energy provider”?

There isn’t anything inherently exciting about purchasing electricity and/or natural gas. Nevertheless, you still have a choice of who you purchase it from. And within those choices are locally-owned and operated energy retailers, as well as others that are not.

 

The push for shopping locally should not end after the holiday season. As we enter 2021, local businesses will need your help more than ever, but this year Alberta’s market will also see the introduction of another American-run energy retailer. 

 

Alberta’s competitive market can support well-paying jobs and offer customers lower energy prices.

 

If you are a homeowner and currently enrolled on the Regulated Rate Option (RRO) provided by Direct Energy, the February electrical rate is 8.261 cents/kWh.

 

Are there options for consumers? Absolutely! Mountain View Power’s fixed retail electricity prices are below the government-sponsored Regulated Rate Option (RRO). Mountain View Power’s  2021 guaranteed electricity rate is 6.79 cents/kWh. 

 

Compare and save. As outlined in the chart below, ENMAX is charging 8.763 ¢/kWh in February, and regulated rate customers of EPCOR will see their retail prices jump from 6.8 ¢/kWh in December 2020 to 8.835 ¢/kWh this month. Additionally, in the farming community, North Parkland Power REA for example pushed their electricity rate up to 10.1 ¢/kWh. Prices charged by all regulated providers in Alberta have increased. 

	February 2021	Febuary 2021
Electricity Retailer	Cost of Energy	Administration Fee
Direct Energy Regulated Services	8.261 ¢/kWh	$12.74/Month*
ENMAX Energy	8.763 ¢/kWh	$7.10/Month**
EPCOR Energy	8.835 ¢/kWh	$6.21/Month***
Mountain View Power	6.790 ¢/kWh	$6.50/Month

* Calculated based on rate of $0.455/Day according to https://www.directenergyregulatedservices.com/ as of February 8, 2021.

** Calculated based on rate of $0.283/Day according to https://www.enmax.com/home/rro/regulated-rates as of February 8, 2021.

*** Calculated based on rate of $0.295/Day according to https://www.epcor.com/products-services/power/rates-tariffs-fees/Pages/regulated-residential-power-rates.aspx as of February 8, 2021. Above rates do not include administration fees , other usage charges or taxes

**** Above rates do not include administration fees , other usage chargeso or taxes

Why pay more for the energy you consume from a company that has outsourced jobs when you can support Mountain View Power, a 100% non-profit company that re-invests in the community.  

 

The bottom line is simple: Mountain View Power prices are more than competitive, and you will be surprised at the perks you will benefit from by switching over to a local and private not-for-profit energy retailer.

 

The responsibility of protecting Alberta jobs cannot be put squarely on the shoulders of our political leaders. Consumers likewise need to be proud of supporting local companies. 

 

For prices, rates on Mountain View Power click this link!