Like many other Torontonians, I have been forced to buy my hot water heater from Direct Energy in the wake of the recent floods. Despite having paid $25 a month for this tank for the past 7 years...and having paid for the tank at least twice over, Direct Energy is still charging me $775 to buy it out. I don't mind buying it out. That seems reasonable. It is their property and it was destroyed. However, you can buy a brand new hot water heater for $400-$900. They are charging me the cost of a brand new hot water heater (though of course they deny that!). Their treatment of me has been appalling. I believe Direct Energy is just using the floods as a way to cash in on their rapidly decreasing market share. Be very very careful. This company will take you for whatever they can.
- Approximate cost of services:
- $3,000.00
- Company Response
Hi Ann,
When you agreed to rent your water heater you were provided with the Terms and Conditions that outlined that you are responsible for damage by flood, fire or other insurable risks. This is a standard clause that has been in our agreements for many years. This is not something we forced on homeowners affected by the flood. It is very clearly written in the agreement. Homeowners whose tanks were damaged need to include the buy-out amount in their insurance claims, if their insurance claim is denied, we will work with homeowners to come to a favourable settlement. Your allegation of Direct Energy using the flood to cash in on people’s misfortunes is completely false. We waived all call-out fees for homeowners in affected areas and we are exchanging tanks older than ten years old free of charge. We've been working with thousands of customers affected by the flooding and have received very positive feedback from our customers. If you'd like, please send us your personal information and one of our senior team members will contact you to discuss this further.
Direct Energy