Direct Energy's Free Nights + Amazon Prime
Is it a good deal? We compare it to a simple, straightforward electricity plan to find out. The results may surprise you!
We’ve all heard the catchy commercials and found ourselves humming the tune, but is Direct Energy’s Free Nights + Free Amazon Prime plan, known as the “On Us” plan, really worth it? It sounds like a great deal, but is it the right electricity plan for you?
In this guide, we’ll break down the plan details and see how they compare to a standard plan. Will Direct Energy’s Free Nights + Amazon Prime live up to the hype?
About Direct Energy
Direct Energy is one of the largest retail electricity providers in Texas, serving both residential and commercial customers. Founded in 1986, the company has grown to become a well-known name in the energy industry. It was acquired by NRG Energy in 2021, placing it under the same umbrella as other major electricity brands like Reliant Energy and Green Mountain Energy.
As a full-service energy provider, Direct Energy offers a variety of electricity plans, including fixed-rate, variable-rate, and time-of-use plans like its Free Nights “On Us” plan. They also provide additional benefits such as Amazon Prime memberships, smart home integrations, and energy-saving tips to help customers manage their usage.
Direct Energy Reviews
Direct Energy has received mixed customer reviews over the years. While some customers appreciate their pricing and online account management tools, others have expressed concerns about billing transparency, unexpected rate increases, and customer service issues.
For Texans looking for a recognizable provider with diverse plan options, Direct Energy remains a major player in the deregulated electricity market. However, it’s always important to review the Electricity Facts Label (EFL) and understand the terms of any plan before enrolling.
What is Direct Energy's Free Nights + Amazon Prime "On Us" Plan?
Direct Energy’s “On Us” plan is a new electricity plan from Direct Energy, offering free electricity and a free Amazon Prime membership when you switch to Direct Energy. This plan is also referred to as “Free Night + Prime,” “9 to 9”, and “Twelve Hour Power On Us 24.”
Here are some details provided by Direct Energy about the Free Night + Prime plan:
- Free power every night for 12 hours and get up to 2 years of Amazon Prime
- Help contribute to renewable energy initiatives
- Get free electricity every night from 9 p.m. to 9 a.m.
- Lock in a fixed rate for 24 months
What Type of Plan Is Direct Energy's Free Nights "On Us" Plan?
Direct Energy’s new Free Nights “On Us” plan is a Time-of-Use (TOU) plan, meaning the provider’s charges vary depending on the time of day.
The concept behind Time-of-Use plans is simple: customers pay higher rates during high-demand (peak) times and lower rates—or even enjoy free electricity—during low-demand (off-peak) times. By shifting more of your electricity usage to off-peak hours, you can potentially save money and maximize the benefits of the plan.
Direct Energy's Free Nights Plan - At First Glance
For these examples, we’re using plans for TDU Oncor. While the exact numbers may vary slightly across different TDUs, the overall concept remains the same.
Additionally, we’re not endorsing any specific provider or plan. Our goal is simply to illustrate how this plan compares to a simple, straightforward electricity plan.
Plan Pricing
Direct Energy Free Nights "On Us" + Prime Plan
This chart illustrates how your electricity costs change as your monthly usage increases with the Direct Energy Free Nights plan.
Plan Details (we show how to obtain these later in the article)
- Energy Charge: 28.0409¢ per kWh
- Base Charge: $9.95/mo
- Discounted Time: 9:00 a.m. to 9:00 p.m.
- Discounted Rate: 0¢ per kWh
- Assumed Discounted Usage: 45%
- Advertised Prices
- 500 kWh = 20.8¢ and $104/mo
- 1000 kWh = 19.6¢ and $196/mo
- 2000 kWh = 18.9¢ and $378/mo
Compared to a Simple Plan
This chart illustrates how the electricity cost of a simple plan compares to the Direct Energy Free Nights plan as usage increases.
Plan Details – Simple, Straightforward, No Gimmick Plan
- Energy Charge: 8.5722¢ per kWh
- Base Charge: $0.00/mo
Discounted Time:n/aDiscounted Rate:n/aAssumed Discounted Usage:n/a- Advertised Prices
- 500 kWh = 14.7¢ and $73/mo
- 1000 kWh = 14.3¢ and $142/mo
- 2000 kWh = 14.1¢ and $279/mo
Cost Difference Between the Two Plans
Here’s how the difference in cost looks between the two plans as your usage increases.
- @ 500 kWh = +$33 for the Direct Energy Plan
- @ 1000 kWh = +$55 for the Direct Energy Plan
- @ 2000 kWh = +$100 for the Direct Energy Plan
Keep in mind this is for each month. The charts we’re showing are for monthly usage.
Does the Amazon Prime Membership Make Up the Difference?
We did expect the Direct Energy plan to cost more than a simple, straightforward plan given you’re getting 2 years of free Amazon Prime, a $280 value, or a $15 Amazon gift card each month for existing Prime members, a $360 value when you signup for the plan.
But let’s see if the cost difference between the plans is worth the Amazon Prime Membership.
With 2-Year Amazon Prime Membership - $280 Value
With $15 Amazon Gift Cards for Existing Members - $360 Value
At first glance, choosing a simple, straightforward plan seems like the smarter option. Not only could you cover the cost of your own Amazon Prime membership with the savings, but you’d also have extra money left over to spend however you like—rather than being limited to Amazon gift cards.
Unfortunately, It Gets Worse—You Could End Up Paying Even More!
The examples above are based on the advertised numbers and assumptions provided by Direct Energy for this plan. Their calculations assume that 45% of a customer’s usage occurs between 9 AM and 9 PM. However, in reality, the average customer’s usage during this time is closer to 35%, not 45%.
While the total cost difference is already significantly higher than a simple plan, let’s take a look at how the numbers stack up using real-world examples.
Real Average Daily Electricity Usage
Here’s an example of a typical household’s daily electricity usage pattern. As you can see, most households use far less than 45% of their electricity between 9 AM and 9 PM. While total electricity usage may fluctuate throughout the year, the overall pattern of when electricity is consumed generally remains consistent.
Let’s see what the numbers look like using 35% as the Discounted Usage rate instead of the advertised 45%.
More Accurate Discounted Usage Rate of 35%
Real Cost Difference Between the Free Nights Plan and Simple Plan
- @ 500 kWh = +$50 for the Direct Energy Plan
- @ 1000 kWh = +$89 for the Direct Energy Plan
- @ 2000 kWh = +$169 for the Direct Energy Plan
With 2-Year Amazon Prime Membership - $280 Value
With $15 Amazon Gift Cards for Existing Members - $360 Value
You can see how applying a more accurate representation of usage during the free electricity timeframe significantly alters the comparison between this plan and a simple, straightforward plan.
Our Review: Is the Direct Energy Free Nights + Amazon Prime Plan Worth It?
After breaking down the numbers, it’s clear that this plan is not a great fit for most customers. Even by Time-of-Use (TOU) plan standards, it falls outside the norm. The advertised savings are based on an assumption that 45% of a customer’s electricity usage falls within the free 9 a.m. – 9 p.m. window, but in reality, most households use closer to 35%.
To truly break even, a customer would need to shift 60-65% of their total electricity usage to the free period—something that is unrealistic for most people. Even factoring in the Amazon Prime membership or monthly gift cards, the higher energy rates still result in significantly higher overall costs compared to a simple, straightforward plan.
For those with an unusually high percentage of daytime electricity use, this plan might offer some value. But for the vast majority of Texans, it will end up costing far more than a standard fixed-rate plan. If you’re looking for reliable savings, a simple, no-gimmick plan is still the better choice.
Texans can save up to
$500 per year
by switching to a new electricity plan
explore affordable plans in your area
Direct Energy's Free Nights Plan - By the Numbers
You might be wondering where we sourced the numbers used in our examples and how you can find them yourself.
All pricing information comes directly from the plan’s Electricity Facts Label (EFL), reflecting the actual rates for the plan in the ONCOR service area at the time this article was written. Every electricity plan includes an EFL, which outlines all the key details and pricing structure.
We strongly recommend reviewing the EFL before enrolling in any electricity plan to ensure you fully understand its terms and costs.
Note: We’ll only focus on the provider’s charges and exclude TDU delivery charges. TDU charges are consistent for all customers in a given service area. While energy charges may vary slightly by TDU, the mechanics of the plan remain unchanged.
For this plan, delivery charges are prorated, meaning no delivery fees are billed during the Discounted Time.
Key Provider data points for all plans:
- Energy Charge: 28.0409¢ per kWh
- Base Charge: $9.95/mo
Key Provider data points for Time-of-Use plans:
- Discounted Time: 9:00 a.m. to 9:00 p.m.
- Discounted Rate: 0¢ per kWh
- Assumed Discounted Usage: 45%
Energy Charge is how much you’ll pay for electricity outside of the Designated Free Period.
Base Charge is a fixed amount you pay each month regardless of how much electricity you use. Typically range from $0 to $10.
Discounted Time is the window of time when the amount of electricity you use will be applied to the discounted rate.
Discounted Rate is how much you’ll pay for the electricity used within the Discounted Time.
Assumed Discounted Usage is how much of your electricity the provider assumes will fall within the Discounted Time.
Direct Energy Free Nights Plus Prime—Red Flags
Advertised Prices
The first red flag we noticed is the advertised price—it’s 4.8¢ per kWh higher than other simple plans. At the time of this article, the advertised price for the Direct Energy “On Us” plan at 2,000 kWh was 18.9¢ per kWh, compared to just 14.1¢ per kWh for a straightforward 24-month plan.
Typically, advertised prices for Time-of-Use (TOU) plans are very similar to those of simple, fixed-rate plans. Therefore, seeing a TOU plan with a significantly higher advertised price is definitely a red flag.
Below are the plan detail cards for Direct Energy’s Free Nights plan and the simple, no-gimmick plan used in the comparison chart above.
Free Nights + Amazon Prime
Simple 24-Month Plan
With the Free Nights + Amazon Prime plan, you do receive two free years of Amazon Prime ($280 value) or $15 per month in Amazon gift cards ($360 total value). So, it’s reasonable to expect the advertised price for this Time-of-Use plan to be slightly higher than usual. However, a quick look at the numbers reveals a major discrepancy.
A 4¢ difference per kWh might not seem like much at first, but at just 1,000 kWh per month, that adds up to an additional $40 per month (1,000 kWh × 4¢ = $40). Over a 24-month contract, that’s an extra $960 ($40 × 24 months = $960), which is significantly more than the cost of an Amazon Prime membership.
Provider's Energy Charge
The second red flag we noticed was the unusually high Provider’s Energy Charge. The energy charge should be one of the first things customers look for when shopping for an electricity plan.
The Provider’s Energy Charge is found in the Electricity Facts Label. It’s the actual price you pay for electricity before any credits, discounts, or delivery charges are factored in. In contrast, advertised prices include these adjustments, which can sometimes make a plan appear more affordable than it actually is.
More complex plans, such as Time-of-Use (TOU) or Bill Credit plans, tend to have a higher Energy Charge than simple, straightforward plans to compensate for the discount or credit. In reality, many customers won’t meet the conditions required to receive the full discount—ultimately leading to higher electricity costs.
For most customers, simple, no-gimmick plans with the lowest Provider’s Energy Charge are the best option.
In the case of the Direct Energy Free Nights + Prime plan, the Provider’s Energy Charge is exceptionally high—more than three times that of a straightforward plan—making it a costly choice for the average customer.
Assumed Discounted Usage Amount
The third red flag is the assumed usage percentage Direct Energy used to calculate the advertised prices. At first glance, 12 free hours—half the day—might make 45% free usage seem reasonable. However, it’s important to consider that a significant portion of this timeframe falls during the evening and overnight hours when people are typically sleeping for 7 to 8 of those 12 hours.
Understanding the Assumed Usage Percentage is critical for evaluating Time-of-Use (TOU) plans. This information is always included in the plan’s Electricity Facts Label (EFL) under the Description section of the Electricity Pricing portion.
Most TOU plans assume that 35-40% of a customer’s electricity usage occurs during the discounted timeframe. While Direct Energy’s assumption of 45% aligns with industry trends, the reality is that most customers only use about 25-30% of their electricity during off-peak hours. Based on this, we adjusted our analysis and assumed that 35% of usage would fall within the discounted period for Direct Energy’s Free Nights + Amazon Prime plan, providing a more accurate estimate of real-world savings.
How the Direct Energy Free Nights "On Us" Plan Works
How the plan works is fairly straightforward, but determining if it’s right for you is a bit more complicated.
From a customer’s perspective, the Direct Energy Free Nights “On Us” plan works like most other Time-of-Use plans. There’s nothing special you need to do or any special equipment required. You use electricity as you normally would, and the provider takes care of the rest.
The key difference between Time-of-Use plans is the window of time for the discount and the per kWh rate during that time. Beyond that, the overall mechanics of Time-of-Use plans are essentially the same.
Provider's Workflow for Time-of-Use Plans
Determine Your Usage
Direct Energy receives your usage each month from your local Utility Supplier. They review your usage and calculate the total amount of electricity (kWh) you use during the discounted time. For this plan, they calculate the usage starting at exactly 9:00 a.m. and ending at 8:59:59 p.m.
Apply Charges
The amount of electricity you use (kWh) during the discounted time is multiplied by the “Energy Charge” defined in the plan.
Apply Fees
Once your usage charges are calculated, they add any fixed/monthly fees to create your bill.
Direct Energy Reviews
Direct Energy has no Google Reviews, which is a bit of a red flag. But across the internet, they receive mixed reviews from customers, with some praising the company and others complaining about poor customer service. Below is a summary of the most common reviews we’ve gathered.
Most Common Positive Reviews for Direct Energy
Some customers have praised Direct Energy’s customer service, saying the representatives are friendly and helpful.
Others say they had a positive experience with Direct Energy during the COVID-19 crisis.
Some customers say Direct Energy has competitive initial rates.
Most Common Negative Reviews for Chariot Energy
Some customers say they experienced unexpected rate increases.
Others say they experienced billing errors. This is a very common complaint amongst all providers.
Customers have experienced difficulty canceling service.
Some customers say they felt misled by promotional offers.
Some customers say they experienced poor customer service with long hold times.
Additionally, the Better Business Bureau (BBB) has given Direct Energy an F rating, citing reasons such as the business’s failure to resolve underlying causes of a pattern of complaints and a significant number of complaints filed against the company.
Review Summary
While some customers have had positive experiences with Direct Energy’s pricing and online services, concerns about billing practices and customer support are common. We encourage potential customers to carefully research and weigh these factors before choosing Direct Energy as their provider.
This is where we can help. Our goal is to empower customers to make informed decisions and help customers become savvy shoppers.
Remember, individual experiences can vary. It’s always wise to compare multiple providers and read reviews to ensure you’re selecting the best plan for your needs.
Direct Energy Frequently Asked Questions (FAQ)
Who is Direct Energy?
Direct Energy is one of North America’s largest competitive energy suppliers of electricity and natural gas. We operate in Alberta, Texas, and many areas in the Northeast and Midwest Unites States.
To learn more about us, visit our About Us page.
How do I enroll in Paperless Billing?
The best time to sign up for Paperless Billing or electronic billing is at the time of enrollment. If you are a current customer, you can log in to your Online Account Manager and enroll in Paperless Billing. Please note that it may take one to two billing cycles to begin receiving your electronic bill.
Direct Energy customers do not have to be enrolled in Paperless Billing. This is an optionalservice we offer to interested customers. Please be advised that customers not enrolled in Paperless Billing will still receive a courtesy e-mail the day a new bill is generated.
How do I view my bill?
To view your bill, usage details and make a payment with Direct Energy, log in to your Direct Energy Online Account Manager, hover over the Billing and Payments icon in the top navigation bar, and select the appropriate link for the action you want to take.
What is Average Monthly Billing?
Average Monthly Billing allows you to pay an evened-out amount every month instead of receiving fluctuating monthly bills.
How does Average Monthly Billing work wth Direct Energy?
Average Monthly Billing is designed to even out the highs and lows in your electric bill and is based on your current price plan and usage history at your service location. Your Average Monthly Billing amount recalculates each month and is based on an average of your current month’s usage plus your prior usage up to 11 months, plus or minus a portion of your accumulated variance, multiplied by the plan rate you chose originally.
Where can I find information about the different fees and charges from my electricity bill?
We’ve created a simple guide to walk you through the details of the various fees and charges on your Direct Energy bill.
What is my Direct Energy account number?
This is the number that identifies you as a Direct Energy customer. It is typically used to locate your personal information when you call customer support.
Texas customers
You can find your account number at the top of your bill. If you’re a POWER-TO-GO BY DIRECT ENERGY prepaid electricity customer, you have a Direct Energy account number, but to make a payment, please enter your payment ID instead. This can be found in one of your latest emails or text messages about your account status.
Northeast & Midwest customers
You’ll use your Utility Account Number when calling Direct Energy customer service or registering your Direct Energy online account. Your Utility Account Number is attached to your account with your local utility. You can find this number on your utility bill, your Direct Energy confirmation email and your Direct Energy Online Account Manager under Account Information.
What information do I need to setup my Online Account Manager?
To set up your Direct Energy Online Account Manager, you’ll need your ZIP code, Direct Energy account number or utility account number, and local utility company and service type where applicable. You can find this information by looking at your latest energy bill.
Links
Here are some help links from Direct Energy
Pay your Bill – Login to your Direct Energy account to view and pay your electric bill and manage your account.
Quick Pay – May a quick payment to your Direct Energy Bill.
FAQ – Find answers to some of Direct Energy’s most common questions
Contact – Got more questions? Chariot Energy is here to help.
Direct Energy on Social Media
Promo Code
Promo Code: N/A
Company Information
- Company Name: Direct Energy, LP
- DBAs: Direct Energy, Direct Energy Business Services, Direct Energy Multi-Family, New Leaf Energy
- Sales: 1-855-461-1926
- Support: 1-888-305-3828
- Message: Contact Support
- Texas Retail Electricity Provider Registration: PUCT# 10040