Direct Energy free nights, sold as Twelve Hour Power, charges nothing for electricity used from 9 p.m. to 9 a.m. The catch is on the Electricity Facts Label. As of September 29, 2026, the 12-month versions charge 34.5 to 35.4 cents per kWh for daytime energy on Direct Energy's current EFLs (dated August 1 and September 1, 2026), or roughly 40.5 to 41.8 cents once delivery is added.

That daytime price is the whole review. Twelve Hour Power can beat a fixed-rate plan, but only for a home that moves well over half of its usage into the free window, and the EFL's own averages assume just 45%.

Key takeaways

• Direct Energy Twelve Hour Power makes 9 p.m. to 9 a.m. free every day, and its EFLs state that no TDU delivery charges are billed during that Designated Free Period.
• As of August 1, 2026, the 12-month daytime energy charge is 34.4999 cents per kWh in Oncor. As of September 1, 2026, it is 35.4314 cents in CenterPoint and 34.8598 cents in AEP Texas Central.
• Longer terms charge far less per daytime kWh. As of August 1, 2026, the Oncor 18-month Auto Pay plan charges 25.5533 cents and the 24-month plan charges 27.6081 cents.
• Every average price on these EFLs assumes 45% of your usage lands in the free window. At that share, the Oncor 12-month plan averages 23.5 cents per kWh at 1,000 kWh as of August 1, 2026, against the 15.88-cent Texas residential average the U.S. Energy Information Administration (EIA) reported for July 2026.
• Measured against that 15.88-cent benchmark, the Oncor 12-month plan breaks even only when about 64% of your usage falls between 9 p.m. and 9 a.m.

What is Direct Energy's free nights plan?

Direct Energy's free nights plan is Twelve Hour Power, a fixed-rate time-of-use electricity plan that charges no energy fee for anything used from 9 p.m. to 9 a.m. and one fixed energy charge for everything used from 9 a.m. to 9 p.m. Direct Energy's free nights page advertises "12 hours of free power" and labels the 24-month version its most popular plan.

Direct Energy is a Texas retail electric provider owned by NRG Energy. Its current Twelve Hour Power EFLs cover 12-month, 18-month and 24-month terms, and some versions add an Auto Pay discount. The EFL calls the free hours the "Designated Free Period."

Twelve Hour Power has one real structural advantage over many free nights plans. The EFL states: "All delivery charges will be prorated and the customer will not be billed for any TDU delivery charges during the Designated Free Period." A nighttime kWh on this plan genuinely costs nothing, not the roughly 6 cents of delivery that some rival free nights plans still bill overnight.

What does the Direct Energy EFL charge after the free window?

As of September 29, 2026, Twelve Hour Power charges a daytime energy rate between 21.8009 and 35.4314 cents per kWh across the six current EFLs reviewed below, depending on the utility and the contract term, plus a $9.95 monthly base charge. Because delivery is billed only on daytime usage, the true price of a daytime kWh is the energy charge plus the utility's per-kWh delivery rate.

Every plan in the table also carries the $9.95 base charge plus the utility's fixed monthly delivery charge ($4.06 in Oncor, $4.90 in CenterPoint, $3.24 in AEP Texas Central), which the EFL's pricing formula prorates to the paid share of usage. Offers change by address and by date, so pull the EFL for your own ZIP code before relying on any row. The Oncor 12-month figures come from the Twelve Hour Power 12 Oncor EFL.

For context, as of July 1, 2024, Dallas Morning News Watchdog columnist Dave Lieber wrote that once the free period ends on Texas free plans, "the kWh rates can be as high as 21 to 29 cents per kWh." When he found a 28.8-cent daytime rate on a competing plan in that column, he wrote: "I have never seen a kWh price that high." The 12-month Twelve Hour Power daytime charge in August and September 2026 sits about 6 cents above that figure before delivery.

Does Direct Energy charge delivery fees during the free hours?

No. Every Twelve Hour Power EFL reviewed here says the customer "will not be billed for any TDU delivery charges during the Designated Free Period," and the EFL's pricing formula applies delivery to 55% of monthly usage, the daytime share it assumes. The free window truly costs nothing, which is a genuine difference from plans that bill delivery around the clock.

That delivery cost does not disappear, though. It moves into the daytime. Watt Owl's March 2026 analysis of two Texas homes, with rates as of February 22, 2026, found that on the four free-hours plans it tested, "free" electricity still cost about 6 cents per kWh in Oncor delivery. It also noted that the plans which waive delivery see "their peak rates jump above 20¢/kWh" (as of February 22, 2026). Twelve Hour Power follows that pattern. Each daytime kWh carries the full 6.0295-cent Oncor delivery rate on top of the 34.4999-cent energy charge, which is how the all-in daytime cost on the 12-month Oncor plan reaches 40.53 cents as of August 1, 2026.

How much more does the 12-month plan charge per daytime kWh?

The 12-month Twelve Hour Power plan charges 8.9466 cents more per daytime kWh than the 18-month Auto Pay version in Oncor (34.4999 versus 25.5533 cents, EFLs dated August 1, 2026). In CenterPoint the gap widens to 13.6305 cents (35.4314 versus 21.8009 cents, September 1, 2026). The shorter commitment carries a steep premium, and the EFLs do not say why.

In dollars, a home using 1,000 kWh a month with 45% in the free window buys 550 daytime kWh. On those 550 kWh, the Oncor 12-month energy charge costs $49.21 more per month than the 18-month plan before any Auto Pay discount, or about $590 a year.

Two details complicate the longer terms. First, the early termination fee rises to $180 on the 18-month plan and $295 on the 24-month plan, compared with $150 on the 12-month plan. Second, the Auto Pay price only applies while you are enrolled: the EFL says "if you are not enrolled in the automatic payment option, you will not receive the discount." Oddly, the 24-month Oncor plan (27.6081 cents) charges more per daytime kWh than the 18-month Auto Pay plan (25.5533 cents) even before the discount, so the longest term is not the cheapest one on these labels.

What does the EFL's "45% free" assumption mean for your bill?

The 45% assumption means the advertised average prices only hold if 45% of your usage falls between 9 p.m. and 9 a.m. Below that share, your real bill runs higher than the EFL's averages. The EFL puts it this way: "Average price calculations are based on a total consumption profile over a 12 month period assuming 45% of consumption occurs during the Designated Free Period." Texas rule 16 TAC 25.475 requires the average price at 500, 1,000 and 2,000 kWh, but the 45% share is Direct Energy's assumption, not a measurement of your home.

The table below models a 1,000 kWh month in Oncor at different free-window shares, using the EFL line items as of August 1, 2026 (daytime energy charge, $9.95 base charge, and delivery prorated to daytime use). The last column is 1,000 kWh at 15.88 cents, the Texas residential average price in EIA's Electric Power Monthly for July 2026.

These are modeled bills that exclude taxes and the small PUC assessment, which is why the 45% row lands within a few cents of the EFL's own 1,000 kWh averages (23.5, 18.3 and 19.7 cents). At the EFL's 45% assumption, the 12-month plan costs about $76 more per month than paying the July 2026 state average, or roughly $915 over a year.

How much of your usage has to shift to break even?

Break-even on Twelve Hour Power falls between about 43% and 72% of monthly usage in the free window, depending on the term, the utility and the fixed rate you compare against. The break-even share is the point where the plan's daytime cost (daytime usage times the all-in daytime kWh price, plus the prorated delivery charge and the $9.95 base charge) equals the fixed plan's bill.

The 13-cent column approximates today's cheapest fixed plans. Clear Energy Facts' Twelve Hour Power review, updated September 28, 2026, compared the plan against the top 20 true fixed-rate plans, led by a 13.2-cent plan at 1,000 kWh as of that date, and concluded: "55% or more is what you need to make this plan worth it, and this is not easy to achieve." The 18-month and 24-month rows above land in that same range, while every 12-month row sits well above it.

Can a real Texas household shift that much usage?

The limited real-usage data available suggests most households cannot. Watt Owl ran 15-minute Smart Meter Texas data from two Dallas-Fort Worth homes and found 22.4% and 15.6% of their usage between 11 p.m. and 6 a.m. Its widest window, 8 p.m. to 8 a.m., which is the closest it tested to Direct Energy's 9-to-9 hours, captured 41.2% and 37.2%. Both homes fall short of the EFL's 45% assumption, let alone a 55% to 64% break-even. Two homes are a small sample, which is exactly why your own meter data matters more than any average.

Texas afternoons are the first obstacle. ERCOT's hourly peak load reached a record 91.1 gigawatts on July 22, 2026, and EIA reports the peak occurred at 6:00 p.m. Central, squarely inside Twelve Hour Power's paid window. Afternoon air conditioning cannot move to midnight, and Watt Owl found the free-period share "barely changes by season" in its data.

Habits are the second obstacle. Rebecca Bridges of ElectricityPlans told the Dallas Morning News: "They think they're going to beat the price advertised on the Electricity Facts Label. But people's habits tend to be pretty ingrained. Everybody wants something for free." Her first piece of advice was simpler: "Make sure you understand what you're buying."

How do you test Direct Energy free nights against your own usage?

The 9-to-9 Daytime Kilowatt Test is a four-step check that turns a Twelve Hour Power EFL into a yes or no for your specific home before you sign.

1. Find the daytime energy charge. On the EFL for your address, read the line "Daily beginning at 9:00 AM ending at 9:00 PM."
2. Add the delivery rate. Add your utility's per-kWh delivery charge from the same EFL. The sum is the all-in price of every daytime kWh, for example 40.53 cents on the Oncor 12-month plan as of August 1, 2026.
3. Measure your free-window share. Download 15-minute interval data from Smart Meter Texas for the last 12 months, then divide the kWh used between 9 p.m. and 9 a.m. by your total kWh. Use a full year, because summer afternoons are where this plan wins or loses.
4. Compare with break-even and keep a cushion. Check your share against the break-even table for your plan and your best fixed-rate alternative. If your share does not clear break-even by at least 5 percentage points, a fixed-rate plan is the safer choice, because heat waves, sick days and work-from-home weeks all push usage into daylight.

The Real Cost of Free Nights Plans guide walks through reading a free nights EFL line by line, and the free nights plan calculator runs the same math for other plans.

Who is Direct Energy free nights a good fit for?

Twelve Hour Power fits homes whose electricity use is naturally nocturnal or easy to schedule: night-shift households, electric vehicle owners who charge overnight, and some homes with rooftop solar.

• Night-shift households. Watt Owl names people who sleep through the day as the group that "might get there" on free nights plans.
• EV owners who charge after 9 p.m. EnergySage estimates the average EV driver uses 408 kWh a month on home charging. Add that load to a 1,000 kWh home that already runs 40% of its usage at night, and the free share rises to about 57%, above break-even for the Oncor 18-month and 24-month plans against the 15.88-cent average.
• Some solar homes. Clear Energy Facts notes that for solar owners "the math is different, and this is usually their favorite plan," because panels cover much of the daytime load. Confirm how Direct Energy credits any electricity you export before switching, since this review covers only the consumption charges.

The poor fits are work-from-home households, homes that run air conditioning hard all afternoon, and anyone considering the 12-month plan without a year of data showing 60% or more of usage at night.

What fees and contract terms should you check before signing?

Beyond the daytime rate, five terms on the Twelve Hour Power EFL and plan page decide what the plan really costs.

• Base charge: $9.95 per month on every EFL reviewed here, billed whether you use electricity or not.
• Early termination fee: $150 on the 12-month plan, $180 on the 18-month plan and $295 on the 24-month plan, each applying through the end of the term. The 12-month EFLs say the fee does not apply if you move and provide a forwarding address and other requested evidence of the move. Look for the same move language on the 18-month and 24-month EFLs before you sign.
• Auto Pay condition: the 0.5-cent discount applies to the paid energy charge only while you are enrolled in automatic payment.
• 90 Day Satisfaction Guarantee: Direct Energy's plan page says you can change to a qualifying Direct Energy plan in the first 90 days with no fee. As written, it covers a move to another Direct Energy plan.
• Price dates: the EFLs reviewed here are dated August 1 and September 1, 2026. Rates on new EFLs can differ, so re-check the label on the day you enroll.

How does Direct Energy free nights compare with Ambit Free and Clear Nights?

Ambit Free and Clear Nights offers free electricity from 9:00 p.m. to 5:59 a.m., seven days a week, according to Ambit Energy's launch announcement. That is a nine-hour window against Twelve Hour Power's twelve hours. A longer window captures more usage, so the fair comparison is not window length alone but the all-in daytime kWh price each EFL charges against the free share each window captures in your home.

Run the same 9-to-9 Daytime Kilowatt Test with a 9 p.m. to 6 a.m. window for Ambit, using the current Free and Clear Nights EFL for your address, and check whether each EFL bills delivery during the free hours, because that changes the all-in math. The TXU Free Nights and Weekends vs Ambit Free and Clear Nights break-even comparison shows that calculation step by step. If the test says your home cannot shift enough usage to night, a fixed-rate plan avoids the daytime premium entirely, and every Ambit Energy plan compared for 2026 lays out those options side by side.

Frequently asked questions

What are Direct Energy's free night hours?

Direct Energy's Twelve Hour Power plans make electricity free from 9 p.m. to 9 a.m. every day, per Direct Energy's free nights page and its EFLs. Usage from 9 a.m. to 9 p.m. is billed at the plan's daytime energy charge.

What is the Direct Energy free nights daytime rate?

As of August 1, 2026, the daytime energy charge is 34.4999 cents per kWh on the 12-month Oncor plan. As of September 1, 2026, it is 35.4314 cents on the 12-month CenterPoint plan and 34.8598 cents on the 12-month AEP Texas Central plan. Longer terms run lower, such as 27.6081 cents on the 24-month Oncor plan as of August 1, 2026. Add your utility's delivery rate for the all-in daytime cost.

Does Direct Energy charge TDU delivery fees at night?

No. The Twelve Hour Power EFLs state that the customer will not be billed for any TDU delivery charges during the Designated Free Period. Delivery is billed on daytime usage instead, adding about 5.8 to 6.4 cents to every daytime kWh, per the EFLs dated August 1 and September 1, 2026.

What is the Direct Energy free nights cancellation fee?

The early termination fee is $150 on the 12-month plan, $180 on the 18-month Auto Pay plan and $295 on the 24-month plan, per the EFLs dated August 1 and September 1, 2026. The 12-month EFLs waive it if you move and provide a forwarding address and proof of the move.

Is Direct Energy free nights worth it?

Direct Energy free nights is worth it only if a year of Smart Meter Texas data shows your 9 p.m. to 9 a.m. share clearly above break-even, roughly 53% to 65% against the 15.88-cent Texas average for most versions. The EFL itself assumes 45%, and at that share every version reviewed here costs more than the state average.

The bottom line

Direct Energy free nights is honest about one thing that many free plans are not: the night really is free, delivery included. The price is a daytime kWh that costs 40.5 to 41.8 cents all-in on the 12-month plans and about 28 to 34 cents on the longer terms, as of September 29, 2026. Pull your Smart Meter Texas history, run the 9-to-9 Daytime Kilowatt Test, and sign only if your own numbers clear break-even with room to spare.

Plan details and rates subject to change. The Electricity Facts Label for any plan, including every Ambit Energy plan, is available before you enroll, and it is the document to check.