ERCOT revokes Griddy Energy operating rights due to ‘payment violation’

The Electric Reliability Council of Texas, which manages the Texas power grid and received massive backlash for its actions during last week’s winter storm, has revoked the rights to operate electricity supplier Griddy due to ‘a “payment violation”.

According to a notice published by ERCOT on Friday, Griddy Energy is to cease operating under the ERCOT protocols due to the violation.

After the unusual freezing weather left millions of Texans without power, some said they saw extremely high electricity bills. Many of those who have reported receiving large bills are customers of Griddy, which only operates in Texas.

A Chambers County resident recently filed a class action lawsuit against Griddy, accusing the supplier of abusing customer prices during the freeze last week. She is asking for $ 1 billion in relief for affected customers.

Lisa Khoury’s attorneys said in the lawsuit that her bill climbed to $ 9,340 in the week of the storm, compared to her average monthly bills of between $ 200 and $ 250. Griddy drew up payments from Khoury’s bank account on several occasions, according to the lawsuit, withdrawing $ 1,200 before blocking other charges from his bank. She still owes thousands.

Watch Khoury’s full interview in the video player above.

Griddy, which launched in 2017, charges $ 10 per month to allow people to pay wholesale electricity prices instead of a fixed rate. He warned customers of the price increase and urged them to switch suppliers. The company said wholesale prices returned to normal on February 20.

Griddy said it has 29,000 members. It is not known how many other Texans are also paying wholesale prices from other companies.

“We won’t get the full picture of the financial devastation for maybe 30 to 90 days,” said Ed Hirs, an energy researcher at the University of Houston.

SEE ALSO: Some Texans Could Be Hit By Rising Electricity Bills

The electricity retailer recently addressed concerns about price fraud on its website and firmly put the blame on the Utilities Board. The company says it has not taken advantage of the price increase.

SEE ALSO: Griddy customer in Houston was slapped with a $ 5,500 electric bill this week

The Associated Press contributed to this report.