Direct Energy recently announced it plans to buy two energy services businesses – NYSEG Solutions and Energetix – from power company Iberdrola USA for $110 million, increasing Direct Energy's customer base by as many as 250,000 in New York and Pennsylvania.
According to the Buffalo News, The deal will significantly increase Direct Energy's Northeast footprint, and comes soon after it grabbed another 280,000 residential and small business customers in Ohio, Indiana and New York. The customers were once with Vectern Source, however switched over when Direct Energy acquired the company.
"The acquisition of Energetix and NYSEG Solutions marks another step in the expansion of our North American retail energy business,"said Direct Energy CEO Chris Weston. "It supports Direct Energy's strategy to grow and add scale to its U.S. Northeast downstream power and gas position, particularly in the New York market."
After the deal closes this fall Direct Energy will have a customer base of 1.3 million customer in the Northeast, the media outlet stated.
The Northeast region is home to several states with energy deregulation laws, including New York, New Jersey and Connecticut, which give residents the option to shop around for lower electricity rates and switch energy providers.