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 Company: Direct Energy, Toronto, Ontario
Company Description: Direct Energy is North America’s largest energy solutions provider, with over five-million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing energy costs through a portfolio of innovative products and services.
Nomination Category: Company & Office Categories
Nomination Sub Category: Best Multinational Company in North America
Nomination Title: Direct Energy
1. Tell the story about what this nominated company achieved in the past year (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:
In 2006 Direct Energy successfully navigated changing regulatory environments
across various jurisdictions, restructured or reorganized significant pieces
of its business in spite of a record 2005 financial performance, completely
reoriented its brand, all while maintaining or expanding customer and employee
satisfaction and while posting another record year of revenue and profit.
Although being little more than six years old, Toronto based Direct Energy is
one of North America’s largest energy and energy services providers. It has
more than 5 million residential and commercial customer relationships in the
U.S. and Canada, providing an innovative portfolio of products and services
that give customers choice and support as they manage their own energy needs.
The energy marketplace in North America is extremely complex. With 123-million
households and 21-million commercial customers there is no shortage of
opportunity. But with more than 120 regulatory jurisdictions and various
stages of deregulation in two countries, the rules for pursuing this
opportunity vary greatly from region to region. This year the company also
faced the challenge of warmer than usual weather, which resulted in less
energy consumption. In fact, the growing spectre of global warming has
challenged Direct Energy to take a leading role in developing green energy
offerings for its customers.
Direct Energy’s approach is to to promote the benefits of true market
competition across all jurisdications and offer consumers choice in
jurisdictions where competition is allowed.
After a record 2005, the company began 2006 with a clear view of how it could
continue to improve and build on its success.
•Restructure Canadian operations to maximize efficiency and profitability
In 2006 Direct Energy moved from a regional based operation to a single pan-
Canadian business unit in order to optimize its cost base. It consolidated
customer categories across the region to leverage the benefits of platforms
and scale.
•Maintain growth momentum in Texas
The company emphatically achieved this goal with revenue growth of 12 per cent
to $2.3-billion, and operating profit increasing to $243-million. The strong
Texas performance was helped by cost-effective power procurement and the
acquisition of approximately 100,000 customers from Entergy Solutions Ltd. It
also increased the renewable (green) component of its energy portfolio with
additional long-term wind power purchase agreements, and products that offer
residential customers the opportunity to offset 100 per cent or 50 per cent of
their power from renewable sources.
•Build competitive business energy operations in US north
The company increased revenues in its US north operations by 13 per cent, to
$517-million, as a result of greater customer numbers and higher retail
prices. The customer base increased by 5 per cent, with an especially strong
performance in the New York market. Direct Energy successfully entered 12 new
utility markets in 2006.
•Identify and execute opportunities to increase profit contribution from our
energy management skills
In 2006, the company expanded the mandate of its energy trading and wholesale
business, resulting in revenue growth to $68-million, from $40-million.
Direct Energy successfully contracted for additional gas storage and
transportation capacity that exploited the existing expert resources we
already had in place, enhancing our market position and capturing significant
value.
As we continue to build on our past successes, we strive to deliver nothing
short of “best in class” operational performance in 2007. We share processes,
knowledge and information across all of our markets to maximize efficiencies
and learn from each other. We, as an organization, are greater than the sum of
our parts.
2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made in the section above. IMPORTANT: Begin each link with http://, and enclose each link in square brackets; for example, [http://www.youraddress.com]:
http://torapp37/EN/AboutUs/Pages/Stevies.aspx
3. Provide a brief (up to 100 words) biography about the leader of this nominated company:
Deryk King is Chairman and CEO of Direct Energy, which reported 2006 revenues
of $8.5-billion.
Mr. King had a successful track record building other companies before he was
asked to launch Direct Energy in 2000. In 1996 he became chief operating
officer of Powergen plc, which he helped expand into India, Indonesia,
Thailand, Hungary, Portugal and Australia.
He is an Oxford University graduate and has completed the INSEAD Advanced
Management Programme and the Cabinet Office Top Management Programme. He is a
member of the Canadian Council of Chief Executives and a Fellow of the
Chartered Institute of Marketing.
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