Direct Energy Suspends Water Heater Rental Contract Revisions

Toronto, ON (March 15th 2012) - In the last few days we have received a great deal of feedback from our customers about the proposed updates and enhancements to the terms and conditions of our water heater rental agreements.

We value our customers and take great care to listen to them.

As a result, we have decided to withdraw our letter and the proposed changes to terms and conditions. No changes to terms and conditions of our water heater contracts will occur at this time.

"I apologize wholeheartedly for the confusion this has caused to our customers, we have not communicated this initiative as well as we could have," said Rob Comstock, Senior Vice President of Canadian Services, "I also want to say sorry to those who had difficulty getting through to us during a period of unprecedented call volumes. Please accept my apologies."

We continue to believe that the enhancements, including a very favourable service guarantee, inflation rate protection, and account protection, offer significant benefits for our customers and we are committed to finding a way to deliver these benefits more effectively going forward to all of our customers.

We regret any confusion that we may have caused and we are committed to doing everything we can do to serve our customers better in the future.

About Direct Energy

Direct Energy is North America's largest energy and energy-related services providers with over 6 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 states plus DC and 10 provinces in Canada.

For further information, please contact:

Lisa Frizzell
Public Relations
Direct Energy
1-416-590-3210
Lisa.Frizzell@directenergy.com