Direct Energy vs. Just Energy: Which Should You Choose?
Direct Energy and Just Energy are two major competitive energy retailers in Alberta and in North America. Unsure of which retailer has the better offer? We compare their offers to help you decide between them.
A word about our methodology:
Please note that all prices listed below are only for the cost of energy supply and administration costs, and do not take into account the costs of energy distribution, transmission or taxes. Total energy costs will be greater than what is listed.
About Direct Energy and Just Energy
Direct Energy is the largest competitive energy retailer in North America, with over 6 million customers throughout the continent. In Alberta it is the second-largest competitive energy retailer, after ENMAX. Direct Energy sells fixed rate plans for electricity, and has both fixed and floating rate options for natural gas. In Alberta, Direct Energy has a sister company, Direct Energy Regulated Services, which sells regulated rate option electricity and regulated rate natural gas
Just Energy is one of the largest competitive energy retailers in Alberta and is also active throughout North America, with about 1.8 million customers in Canada and the United States. It offers fixed price plans for electricity and gas, as well as green energy options.
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Direct Energy vs Just Energy: Compare electricity offers
Both Direct Energy and Just Energy offer fixed rate plans for electricity. Direct Energy's offers include a one- or two-year fixed rate at 6.49¢/kWh and a three-year fixed rate at 6.99¢/kWh, whereas Just Energy sells a fixed rate option at 7.99¢/kWh, known as its Price Protection plan, which is valid for up to five years (with no early exit fees charged after the first year of service). Administration fees charged by the two companies are different: Direct Energy charges $9.00 per month per site (unless part of a dual fuel plan, in which administration charges are $4.50 per site), while Just Energy charges $6.90 per site per month ($8.95 total for dual fuel plans).
Electricity Offers
| One or Two Year Fixed Electricity Plan | |
|---|---|
| Electricity Rate | 6.49 ¢/kWh |
| Monthly Administration Fee | $9.00 |
| Annual Costs | |
| Annual Cost (for 7200 kWh) | $467.28 |
| Annual Cost of Monthly Administration Fee | $108 |
| Total Annual Cost (Electricity Cost + Monthly Administration Fee) | $575.28 |
| Three Year Fixed Electricity Plan | |
| Electricity Rate | 6.99 ¢/kWh |
| Monthly Administration Fee | $9.00 |
| Annual Cost (for 7200 kWh) | $503.28 |
| Annual Cost of Monthly Administration Fee | $108 |
| Total Annual Cost (Electricity Cost + Monthly Administration Fee) | $611.28 |
Power Options
| Price Protection Electricity Program | |
|---|---|
| Electricity Rate | 7.99¢ per kWh |
| Monthly Administration Fee | $6.90 |
| Annual Costs (12 x monthly costs) | |
| Annual Cost (for 7200 kWh) | $575.28 |
| Annual Cost of Monthly Administration Fee | $82.80 |
| Total Annual Cost (Gas Cost + Monthly Administration Fee) | $658.08 |
Our Take
In general, we recommend choosing a floating rate for electricity over a fixed one, unless you can lock in a particularly low fixed rate price (in which case you might also want to check out some of the other suppliers in Alberta). However, if you are looking to lock in a rate over the long run, we recommend choosing a fixed rate for two years or longer. Comparing Direct Energy and Just Energy's rates is not as simple as it looks, however, as their offers are for different time periods; Just Energy's Price Protection plan has a five-year term, whereas the longest option offered by Direct Energy comes in at three years. If you are looking to lock in a price over as long of a time period as possible, Just Energy is one of the few suppliers in Alberta that offers fixed prices for up to five years.
That being said, at 1 ¢/kWh more than Direct Energy's three year fixed price offer, Just Energy's Price Protection charges a fairly substantial premium for locking in a rate for the long term. According to our calculations, the average Alberta household would pay over $40 more per year with Just Energy than they would with Direct Energy's three year plan. However, as Just Energy's administration fees are lower than Direct Energy's, smaller power consumers that find locking in a long-term rate important might find Just Energy appealing.
Direct Energy vs Just Energy: Compare gas offers
Direct Energy sells fixed price plans for natural gas at two term lengths (one year and two year), as well as a three-year floating rate. Just Energy offers one fixed-rate option for natural gas, with a maximum five year term (at $5.49/GJ). Administration charges are the same as for electricity: Direct Energy charges $9.00 per site per month (or $4.50 per site if on a dual fuel plan), and Just Energy charges $6.90 per site per month ($8.95 total per month if on a dual fuel plan).
Offers
| One Year Fixed Gas Plan | |
|---|---|
| Gas Rate | $5.49/GJ |
| Monthly Administration Fee | $9.00 |
| Annual Costs (12 x monthly costs) | |
| Annual Cost (for 120 GJ) | $658.80 |
| Annual Cost of Monthly Administration Fee | $108 |
| Total Annual Cost (Gas Cost + Monthly Administration Fee) | $766.80 |
| Two Year Fixed Gas Plan | |
| Gas Rate | $5.59/GJ |
| Monthly Administration Fee | $9.00 |
| Annual Costs | |
| Annual Cost (for 120 GJ) | $670.80 |
| Annual Cost of Monthly Administration Fee | $108 |
| Total Annual Cost (Gas Cost + Monthly Administration Fee) | $778.80 |
| Three Year Floating Gas Price Plan | |
| Monthly Rate | Flow-Through Price plus $2.00/GJ (winter price cap at $5.99) |
| Monthly Administration Fee | $9.00 |
| Annual Costs | |
| Average Annual Cost for 120 GJ* | $699.60 |
| Annual Cost of Monthly Administration Fee | $108 |
| Total Annual Cost (Gas Cost + Monthly Administration Fee) | $807.60 |
*Prices based on average annual 2014/15 price of $5.83/GJ (March 2014 - February 2015). Please note that these are historical prices and do not impact future prices
Offers
| Price Protection Natural Gas Program | |
|---|---|
| Gas Rate | $5.49 per GJ |
| Monthly Administration Fee | $6.90 |
| Annual Costs (12 x monthly costs) | |
| Annual Cost (for 120 GJ) | $638.60 |
| Annual Cost of Monthly Administration Fee | $82.80 |
| Total Annual Cost (Gas Cost + Monthly Administration Fee) | $741.60 |
Our Take
In spite of what we usually recommend for natural gas, Just Energy's fixed rate appears to offer the best value, when compared to Direct Energy's options. This is in part due to Just Energy's lower administration fees, and because Direct Energy's transaction fee is relatively high (at $2/GJ, compared with $1/GJ offered by other Alberta energy retailers). As a result of the lower administration charges, Just Energy would be particularly appealing for smaller gas consumers.
Though it is tempting to want to "lock in" a price, particularly given how volatile they tend to be, we still recommend that customers looking for a longer term contract (three years or more) choose a floating rate for their natural gas supply. As Direct Energy charges a transaction fee that is $1/GJ higher than what is offered by some of its competitors (and has one of the higher administration fees compared to all Alberta energy retailers), customers might want to look at offers from other Alberta suppliers.
vs : Which Should You Choose?
Our recommendations for which supplier to choose depend on what type of energy you're looking for. Customers interested in electricity will find better rates with Direct Energy, though to be honest cheaper rates for electricity can be found with other Alberta retailers, particularly those who are able to offer variable rates. If you're looking for natural gas, Just Energy's fixed rate appears to be a better option, as at $5.49/GJ it is a relatively low rate and comes with a fairly low administration fee to boot.
Customers looking for dual fuel, however, will find it harder to decide, as Direct Energy's three-year dual fuel option works out to roughly the same per year as Just Energy's five-year Price Protection plan. If you're looking in to lock in a rate for as long as possible, we would recommend Just Energy, as their plan is valid for up to five years.
As prices are just one factor in comparing energy suppliers, you might also want to compare customer reviews for Just Energy and Direct Energy before making your final decision. Even if you are primarily interested in finding the best price for your energy, we suggest looking around and some of the other offers by Alberta energy suppliers, as you may be able to find a better deal than what is offered by Just Energy or Direct Energy.
Still Unsure?
Check out some of our handy information about energy price options and choosing your supplier:
Fixed or Floating Electricity Prices?
Fixed or Floating Gas Prices?
Choosing an Energy Retailer: Top Tips
Comparing Energy Retailers