DIRECT ENERGY PRIVACY CODE

At Direct Energy, your privacy is important to us. We are committed to maintaining the confidentiality, security and accuracy of your personal information. This Privacy Code (the "Privacy Code") describes the information that Direct Energy collects, how we use it and to whom that information may be disclosed.

This Privacy Code covers the activities of the subsidiaries of Centrica Canada Limited in Canada (collectively "Direct Energy") including:

• Direct Energy Marketing Limited (operating under the trade names Direct Energy Home Services, Direct Energy Regulated Services, Direct Energy Business);
• Direct Energy Partnership (operating under the trade names of Direct Energy, Direct Energy Essential Services and Direct Energy Business);

In particular, this Privacy Code applies to any personal information Direct Energy receives, from all individuals, unless the personal information is dealt with in Direct Energy's policies that deal with the personal information of employees.

This Privacy Code applies only to Direct Energy's activities that are subject to the provisions of Canada's federal and provincial privacy legislation, including, where applicable, the federal Personal Information Protection and Electronic Documents Act, and Alberta's Personal Information Privacy Act.

What is Personal Information?

For the purposes of this Privacy Code, "personal information" means information about an identifiable individual. This does not include the name, title, business address or telephone number of an employee of an organization when used for business communications information about our business customers is not covered by this Privacy Code.

The Personal Information We Collect

We collect and maintain different types of personal information about individuals with whom we interact. This includes:

• Contact and identification information, such as name, address, telephone number and e-mail address;
• Product and service related information;
• Credit and financial information such as billing and credit history or payment history;
• Customer relationship information, such as customer service requests; and
• Business relationship information.

As a general rule, Direct Energy collects personal information directly from you. If third parties hold information Direct Energy requires, we will endeavor to ensure the information has been collected with your consent.

We may also collect market-related information, which may include personal information, concerning market trends and activities impacting our business. This information may include contract terms, financial information and other information for the purpose of market analysis and strategic planning. This information may also include information related to our media and public relations activities or related to our interactions with financial and other analysts and advisors.

Where permitted or required by applicable law or regulatory requirements, we may collect information about you without your knowledge or consent.

The Purposes for Collecting Personal Information

Direct Energy collects personal information to allow us to manage and develop our business and operations, including:

• Establishing, managing and terminating business relations with you;
• Reviewing the products and services that we provide to you;
• Reviewing the products and services that we obtain from you;
• Informing you of our products and services other than those that you have specifically requested,
• Informing you of products and services Direct Energy or carefully selected third parties may wish to offer you;
• Protecting us against error, fraud, theft and damage to our goods and property;
• Enabling us to comply with applicable law or regulatory requirements; and
• Any other reasonable purpose to which you consent.

When we collect your personal information, the purpose(s) for collecting the information will be communicated before or at the time of collection.

Limiting Use, Disclosure and Retention

We use and disclose your personal information when, for example:

• It is for purposes described in this Privacy Code;
• We are required by law to do so;
• The information is publicly available; or
• It is required for any additional purposes that may be described at the time we advise you of the use of your personal information (which consent may be express, deemed or implied as explained below).

Your personal information may be disclosed when, for example, it is:

• Permitted or required by applicable law or regulatory requirements;
• Part of Direct Energy's regular reporting activities to other Direct Energy subsidiaries in and outside of Canada;
• To protect the rights and property of Direct Energy;
• During emergency situations or where necessary to protect the safety of a person or group of persons;
• Personal information that is already available to the public;
• To employees, contractors, consultants and other parties (including other members of Direct Energy) who require the information to assist us to establish, maintain and manage our business relationship with you, including, for example, third parties that provide services to us or on our behalf or third parties that collaborate with Direct Energy in the provision of services to you;
• To another party, in the event of a change in ownership of all or a part of Direct Energy through some form of merger, purchase, sale, lease or amalgamation or other form of business combination, provided that the parties are bound by appropriate agreements or obligations which require them to use or disclose your personal information in a manner consistent with the use and disclosure provisions of this Privacy Code, unless you consent otherwise; and
• With your consent.

We may use or disclose your personal information without your knowledge or consent where we are permitted or required by applicable law or regulatory requirements to do so.

Consent

It is important to us that we collect, use or disclose your personal information where we have your consent to do so or as provided in this Privacy Code. Depending on the sensitivity of the personal information, your consent may be express, implied or deemed (using an opt-out mechanism). Express consent can be given orally, electronically or in writing. Implied consent is consent that can reasonably be inferred from your action or inaction. For example, when you accept our products or services, we will assume your consent to the collection, use and disclosure of your personal information for purposes related to your acceptance and use of those products or services, or for other purposes identified to you at the relevant time. Deemed consent is consent we assume in the event that you do not exercise an opt-out mechanism offered to you.

Typically, we will seek your consent at the time that we collect the personal information. In some circumstances, your consent may be obtained after collection but prior to our use or disclosure of your personal information. If we plan to use or disclose your personal information for a purpose not previously identified (either in this Privacy Code or separately), we will endeavor to advise you of that purpose before such use or disclosure.

We may collect, use or disclose your personal information without your knowledge or consent where we are permitted or required to do so by applicable law or regulatory requirements.

Consent may be withdrawn or changed, subject to legal or regulatory requirements. Where required, Direct Energy will advise you of any implications of withdrawing or changing consent. If you wish to withdraw consent, where consent is needed, you may contact Direct Energy using one of the methods listed in the "Contacting Us" section, below.

Choice/Opt-Out

You may change or withdraw your consent at any time, subject to legal or contractual restrictions and reasonable notice, by contacting the office of our Privacy Officer using the contact information set out below. In some circumstances, a change in or withdrawal of consent may limit our ability to provide products or services to, or acquire products or services from, you.

We assume, unless you advise us otherwise, that by receiving a copy of this Privacy Code or by continuing to deal with us, you have consented to the collection, use and disclosure of your personal information as explained in this Privacy Code.

Safeguarding Personal Information

Direct Energy will endeavour to safeguard personal information using methods that are appropriate to the sensitivity of the information.

Accuracy of Personal Information

It is important that the personal information Direct Energy holds about you is accurate and current. Direct Energy requires you to keep us informed of changes to any personal information.

Retaining Personal Information

Except as otherwise permitted or required by applicable law or regulatory requirements, Direct Energy will endeavor to retain your personal information only for as long as is necessary to fulfill the purposes for which the personal information was collected.

Accessing Your Personal Information

You can ask to see the personal information that we hold about you. If you want to review, verify or correct your personal information, please contact our Privacy Officer using the contact information set out below. Please note that any such communications must be in writing.

When making an access request, we require specific information from you to confirm your identity and right to access, as well as to search for, and provide you with, the personal information that we hold about you. We may charge you a fee to access your personal information; but we will advise you of any fee in advance. If you need help in preparing your request, please contact the office of our Privacy Officer.

Direct Energy may not be able to provide you with access to your personal information, where such refusal is permitted or required by applicable law or regulatory requirements. Direct Energy will inform you of the reasons why, subject to any legal or regulatory restrictions, access has been denied.

Handling Complaints

You can direct any questions or concerns about this Privacy Code to Direct Energy's Privacy Officer. Direct Energy will maintain procedures to receive and investigate complaints and complainants will be advised of the results of any such investigation.

Contacting Us

To get more information about Direct Energy's Privacy Code, change or withdraw your consent or make a complaint under this Privacy Code, you can:

Email us at privacy@directenergy.com

Or

Write to us at:

Privacy Officer
Direct Energy
2225 Sheppard Ave. East
Atria III
Toronto ON
M2J 5C2

Revision to this Privacy Code

Direct Energy may from time to time make changes to this Privacy Code to reflect changes in legal or regulatory obligations or changes in the manner in which we deal with personal information. We will post any revised version of this Privacy Code on our website. Any changes to this Privacy Code will be effective from the time they are posted, provided that any change that relates to why we collect, use or disclose your personal information will not apply to you, unless you consent to that change. This Privacy Code was last updated on November 30, 2004.

This Privacy Code does not create or confer on any individual or on Direct Energy any rights, or impose on Direct Energy any obligations beyond any rights conferred or obligations imposed by Canadian privacy legislation.