Griddy’s customers switched to other power providers after ERCOT started it from the Texas market

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Texans who receive their electricity from Griddy Energy are shifted to other suppliers after the Electric Reliability Council of Texas, which operates the power grid for most of Texas, revoked the company’s operating rights because it ‘she had missed the required payments to ERCOT, according to a market. notice.

In total, Texas electricity providers have made no more than $ 2.1 billion in payments owed to ERCOT, according to another market notice on Friday. The state entity depends on transaction fees from suppliers to help operate the state’s electricity grid. These missed payments came after the costs of a megawatt hour of electricity fell from an average of $ 35 to $ 9,000 at the height of last week’s devastating winter storm that contributed to the near collapse of the electricity grid. of State.

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Griddy grabbed the headlines for sending massive invoices to customers. A Chambers County woman has filed a class action lawsuit accusing Griddy of price abuse. In the lawsuit, his attorney claimed the company billed him over $ 9,000 for the storm week, which is in stark contrast to his normal monthly bill of $ 200 to $ 500.

Griddy passes wholesale electricity rates directly to customers, who in turn pay the company $ 10 per month. This differs from fixed rate electricity plans which offer a constant rate regardless of market conditions. Wholesale prices soared during the storm because winter conditions temporarily took many power producers offline, reducing supply and demand skyrocketing.

ERCOT said it “works closely with PUC staff and relevant market participants to ensure effective and efficient customer transfer.” ERCOT spokeswoman Leslie Sopko said she did not have more details on Griddy’s clients.

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In a message to customers that Griddy’s spokeswoman Lauren Valdes shared with The Texas Tribune, the company said ERCOT ignored requests for emergency help and shut it down on Friday.

“It wasn’t a choice we made,” the post read. “The same day that ERCOT announced that there was a shortfall of $ 2.1 billion, it decided to take this action against a single company which represents a tiny fraction of the market and this shortfall.”

ERCOT can ban electricity suppliers from doing business if they make four late payments in a year, according to entity protocols.

Last week, Griddy warned customers about the price increases and encouraged them to switch to other vendors, according to previous reports from the Texas Tribune. The company also posted a blog on its website accusing the Texas Utilities Commission, which regulates ERCOT, of raising the wholesale market price of energy.

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The disastrous effects of last week’s storm sparked day-long hearings in the Texas House and Senate on Thursday and Friday, in which lawmakers questioned ERCOT CEO Bill Magness, the chairman of the PUC DeAnn Walker and representatives of various utility companies on what was wrong.

Tom Hancock, a representative for municipal utility Garland Power and Light, said many providers could struggle to make payments to ERCOT in time after the consequences of the storm.

“ERCOT today owes a lot of money from market players who might have been undercover,” Hancock said. “We believe that if this domino effect will start to occur, that after today, we will know it.”