Texas REP Offering "Membership" Plans That Offer Lower Rate, Benefits In Exchange for Membership Fee

Direct Energy has begun offering to Texas residential customers two electricity plans that offer customers discounted rates and other benefits in exchange for paying a "membership" fee to access the plans.

Specifically, Direct Energy's Preferred Membership Plan includes a one-time membership fee of $49. For that fee, customers receive a member discount of 0.4 cents per kWh on a 12-month fixed rate, as well as a $25 Restaurant.com gift card, and deals on DirecTV and home services products

Direct Energy's Preferred Membership Plan is a 12-month fixed rate that has an all-in average price (based on 1,000 kWh usage) of 10.2¢/kWh at Oncor and 11.3¢/kWh at CenterPoint Energy Houston Electric.

Direct Energy also offers an Executive Membership Plan which includes a one-time membership fee of $99. For that fee, customers receive a member discount of 1.0 cents per kWh on a 12-month fixed rate, as well as a $50 Restaurant.com gift card, and deals on DirecTV and home services products

Direct Energy 's Executive Membership Plan is a 12-month fixed rate that has an all-in average price (based on 1,000 kWh usage) of 9.6¢/kWh at Oncor and 10.7¢/kWh at CenterPoint Energy Houston Electric.

An early termination fee of $200 applies to both products.

Direct's Bounce Energy brand is offering similar products with different pricing, with the main difference being that the plans include minimum usage charges for usage under 2,000 kWh as follows: a $2.95 base charge will apply if usage in the billing period is greater than 999 kWh and less than 2,000 kWh; a $6.95 base charge will apply if usage in the billing period is greater than 249 kWh and less than 1,000 kWh; and a $9.95 base charge will apply if usage in the billing period is less than 250 kWh.