Direct Energy vs. Direct Energy Regulated Services: Which Should You Choose?

Direct Energy Alberta and Direct Energy Regulated Services (DERS) are two companies that offer natural gas and power in Alberta. While they share the same parent company, they are in fact two separate companies, and offer slightly different products. Hesitating between DERS and Direct Energy? Here we explain the differences between the two companies so that you can decide which energy supplier is right for you.

Direct Energy vs Direct Energy Regulated Services: What's the difference?

Put simply, Direct Energy Regulated Services is a regulated rate provider, meaning that it sells regulated rate electricity and gas to customers within the ATCO Electric and ATCO Gas service area. Direct Energy Alberta, on the other hand, is a competitive energy retailer that offers a variety of fixed and floating energy contracts. Whereas Direct Energy Regulated Services is limited to a specific service territory, Direct Energy Alberta can provide service throughout Alberta (except for areas served by rural electrification associations or natural gas co-ops). This means that Direct Energy Alberta and Direct Energy Regulated Services can operate in the same area, which can sometimes lead to confusion between the two companies.

Summary

Competitive energy retailer Offers fixed & floating competitive energy contracts Available throughout Alberta	Regulated rate provider Offers regulated rate power & natural gas RRO power offered only in ATCO Electric service territory Regulated rate natural gas available in ATCO Gas service territory

Direct Energy vs Direct Energy Regulated Services: Which Should You Choose?

This is somewhat of a trick question, as Direct Energy Regulated Services isn't available throughout the province (only within the ATCO Electric and ATCO Gas service areas).

However, if you do live within the Direct Energy Regulated Services territory, you have the option of sticking with the regulated rate or choosing one of the competitive energy options offered by Direct Energy Alberta. When looking only at prices (remember, you may want to consider multiple factors when choosing your energy supplier) Direct Energy's fixed electricity rates are cheaper than the Direct Energy Regulated Services historical RRO average (based on the past two years of RRO rates). While this is interesting to know if you are considering a fixed electricity rate, keep in mind that wholesale electricity prices have been quite low during the first half of 2015, which makes a floating rate more attractive than a fixed one.

When looking at natural gas supply, we do not recommend a fixed rate, as natural gas prices have been declining, and it is not expected that they will increase rapidly any time soon. Both Direct Energy's floating gas rate and the regulated Gas Flow-Through Rate offered by Direct Energy Regulated Services are based on market prices, which may make choosing between them a bit more difficult. However, based on historical prices from July 2014 to June 2015, Direct Energy Regulated Services stands out as the considerably cheaper option.

Still not sure? Before making your final decision about your energy supplier, you might want to compare customer reviews for Direct Energy and Direct Energy Regulated Services.

Learn more about choosing your supplier:
Choosing an Energy Retailer: Top Tips
Comparing Energy Retailers

Comparing Electricity Offers

Direct Energy Alberta offers only fixed rate options for electricity, whereas the RRO offered by Direct Energy Regulated Services is a variable rate that changes every month. The two companies also charge different administration fees: Direct Energy charges $9 per site ($4.50 per site when part of a dual fuel plan), whereas Direct Energy Regulated Services charges 28.5¢/day for electricity (about $8.55 per month).

Direct Energy Alberta Power Options

Direct Energy Regulated Services RRO

Comparing Gas Offers

Direct Energy Alberta has both fixed and floating rates for natural gas and charges a $9.00 per site ($4.50 for dual fuel) administration fee. Direct Energy Regulated Services' regulated rate (known as the Gas Flow-Through Rate) changes every month and is approved by the Alberta Utilities Commission (AUC). The Gas Flow Through Rate is split based on geography: customers in or north of Red Deer are in the North category, and customers south of Red Deer are in the South category. Direct Energy Regulated Services charges a 22.3 ¢/day administration fee for natural gas (for both North and South customers), which works out to about $6.69 per month.

Direct Energy Offers

Direct Energy Regulated Services Gas Rate

Find Out More Check out some of our handy information about energy price options:
Fixed or Floating Electricity Prices?
Fixed or Floating Gas Prices?