How to Get Out of a Contract With Direct Energy

Direct Energy is an electric and natural gas company that has been under attack for charging customers high penalties fees for disconnection or pre-terminating a contract. The main issue is high monthly rates vis-a-vis the company's policy and promise of a good long-term investment. In other words, charges may be high on a monthly basis compared with those of other companies, but over time, these charges will decrease, and the customers pay less than whatever the rates are. If you are among those wanting to end your contract, it is a possibility.

Step 1

Contact Direct Energy (DE) directly, not through the agent that booked the contract with you.

Step 2

Prepare the details of the contract you signed with Direct Energy, and inform the company of "Buyer's Remorse," which refers to a change of mind. The current company's focus is to avoid bad publicity, so it is voiding contracts on a case-to-case basis.

Step 3

Provide DE with a good number to contact you at. If it is unable to reach you easily, it may send your case to collections and not work with you. Agreement to lower the penalty fees is highly possible if the contract has not been in effect for over 18 months.

Step 4

Answer the DE calls to you promptly because this is the only way DE can work out a resolution that may involve zero to minimal penalty fees. If you do not agree to its new terms, it will cancel the contract, if that is your ultimate goal.


  • DE is able to waive the penalty fees because the charges will be given to the agent who misrepresented the contract.
  • Buyer's Remorse only applies to contracts such as DE's, but there are time limitations, so the sooner you notify DE about a change of mind, the more likely it will listen.

Related Articles