Credit markets throughout the world are much tighter now than they ever have been—credit is hard to come by in the quantities in which it was previously available and the price of borrowing has escalated for those who are qualified to secure it.

In the energy industry, like many other industries, the need for market participants to obtain and freely use credit for daily transactions is essential. In volatile financial markets though, a lack of adequate credit, the inability of a corporation to secure credit, or the use of a single financial counterparty for all credit backing, can, in some cases, lead to a company’s demise.

Energy service providers (ESPs), like Direct Energy Business, face many risks within their realm of operation—from changes in generation cost, to demand and scheduling, to the length and terms of contracts they enter into with customers, to the financial stability of the customers they serve—all of which must be carefully evaluated and managed every day.

With several key players exiting the market, Direct Energy Business is aware of heightened concerns from customers and businesses across North America regarding the security and stability of their energy suppliers. We are committed to easing any potential fears by disclosing our own sound business practices and credit rating information so that new and existing customers know that they can count on us to be a long-term energy partner.

We are committed to planning for and maintaining a long-term outlook, rather than seeking short-term profit, which can subject a company to much higher risk. We carefully analyze and evaluate all facets of our business and our transactions—from the terms and pricing of our contracts, to the risks presented by contract length and purchase price, to the stability and creditworthiness of the companies with whom we enter into contracts—in an effort to protect our business, our customers and our longevity. As a result, we are able to provide a significant value to our customers by applying our high creditworthiness to future energy purchases made on their behalf.

When financial and commodities markets fluctuate, you can count on us to maintain a sound financial position, stand strong behind our commitments, exhibit continued growth and remain a powerful force in the power market now and in the future.

To read more information on the effects of the credit squeeze on electricity service providers in Texas, click here, in the Northeast ISOs, click here or in the California ISO, click here.