We are located in Toronto, Canada which is the 4th largest city in North America population wise.  We have a weird situation here where residents rent their water heaters for some nominal fee per month.  Direct Energy is one of the big players with hundreds of thousands of customers and has endured some major backlash over the last few days.  In an attempt to draw a little more cash out of its customers, Direct Energy decided to change their contracts in a way that would add a significant cash buyout should someone decide to cancel.  The current contract that all customers signed up to stipulated a 75$ fee for Direct Energy to send a crew out to remove the tank.  The new contract change forced cancelling customers to pay a fee of $100 to over $1000. 

The press got wind of this and it was like a wild fire, everyone was panicking and Direct Energy was inundated with calls, emails, and complaints.  As it developed Direct Energy made two attempts to stifle the panic but both failed miserably. Ultimately they decided to cancel their contract changes but the damage has been done.

It’s weird that such a high percentage of people in Ontario rent their water heaters, no one rents their fridge or stove; what makes a water heater any different?

How can I relate this to web hosting? Well it’s a big stretch but we offer contracts regarding your hosting plans. The only difference is that there is no cancellation fee and it’s a little unrealistic for you to keep a server in your home to run a website on.  It has been said that “any publicity is good publicity”, but in a situation where customers flee you like the plague there may be an exception.  I bet ReThink never finds itself in a situation like above… At least I hope not.

Are you a Direct Energy customer? Well here are the contact details if you have any questions for them.

1-866-202-1120 or rentalterms@directenergy.com

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