Calgary says Direct Energy is 'bad for consumers'


NFPA 70E Training

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$199
Coupon Price:
$149
Reserve Your Seat Today
The City of Calgary is going to court to fight Direct Energy's entry into the Alberta market, arguing the British-owned electricity and natural gas giant's arrival is bad for consumers.

Direct Energy, a subsidiary of U.K.-based Centrica, was cleared by the Alberta Energy and Utilities Board last month to acquire ATCO Ltd.'s natural gas and electricity businesses, which serve close to a million customers.

The company's arrival in Alberta has been touted by the provincial government as a boost for competition in the deregulated energy sector.

But the $128-million deal sparked controversy when the EUB cleared Direct to add roughly $40 a year to gas bills and $45 a year on electric bills for ATCO customers.

The extra charges amount to nearly $40 million a year for the company.

Peter Symons, spokesman for Direct Energy, would not comment on the filing recently.

The company has said the extra fees are needed to cover the cost of operating in the province, including buying and storing natural gas and providing billing and other services.

Direct Energy's main competitor -- Enmax Corp. -- is owned by the City of Calgary.

The city's documents, filed with the Alberta Court of Appeal, say the sale "creates market imbalances" and that the board failed to consider the "marketing practices of Direct Energy affiliates."

Direct Energy and its U.S. affiliate, Energy America, have been fined in several jurisdictions, including Ontario, Georgia and Michigan, for aggressive and misleading sales tactics.

Energy America, which pulled out of the Georgia market in late-2003, has paid more than $500,000 US in sanctions in the state for signing up natural-gas customers without their permission.

In Canada, Direct was fined $157,500 in 2003 after its agents were found to have forged 21 utility contracts. The company blamed the problems on rogue agents.

Direct Energy's deal to buy ATCO's retail energy businesses makes it a major player in Alberta, with 800,000 natural gas customers and 175,000 mostly rural electricity consumers.

Related News

The Collapse of Electric Airplane Startup Eviation

Eviation Collapse underscores electric aviation headwinds, from Alice aircraft battery limits to FAA/EASA certification hurdles,…
View more

Nuclear plants produce over half of Illinois electricity, almost faced retirement

Illinois Zero Emission Credits support nuclear plants via tradable credits tied to wholesale electricity prices,…
View more

Nearly 600 Hong Kong families still without electricity after power supply cut by Typhoon Mangkhut

Hong Kong Typhoon Mangkhut Power Outages strain households with blackouts, electricity disruption, and humid heat,…
View more

Edmonton's 1st electric bus hits city streets

Edmonton Electric Buses usher in zero-emission public transit with Proterra battery-electric vehicles, 350 km range,…
View more

National Steel Car appealing decision in legal challenge of Ontario electricity fee it calls an unconstitutional tax

Ontario Global Adjustment Appeal spotlights Ontario's electricity fee, regulatory charge vs tax debate, FIT contracts,…
View more

Opinion: UK Natural Gas, Rising Prices and Electricity

European Energy Market Crisis drives record natural gas and electricity prices across the EU, as…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2026 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified