Wholesale and retail electricity provider Griddy Electric failed to pay the necessary payments to the Texas Electric Reliability Commission (ERCOT), causing Griddy to lose the right to operate in the state, and approximately 10,000 customers have been converted to other services.
Griddy defended himself in a statement posted to Twitter on Friday: “This is not a choice we made.”
According to the market notice, Griddy’s market participation was formally revoked on the same day due to the “payment default” according to the ERCOT agreement.
The move was made after a few days of prolonged power outages in Texas due to unusually severe winter weather, and residents faced devastating electricity bills worth thousands of dollars.
Griddy is one of the providers that shocked customers by issuing huge bills.
Griddy’s statement said: “We are always transparent and customer-centric at every step.” “We hope to continue to fight for relief for our members. This has not changed.”
Griddy explained in a blog post on February 1
The blog post wrote: “As of today, 99% of households have restored electricity, and the available power generation far exceeds 1,000 megawatts.” “However, PUCT still retains the directive and continues to increase the price to $9. / kWh, which is about 300 times higher than the normal wholesale price.”
Griddy charges its customers $10 a month. However, according to reports, some customers face costs close to $10,000 during the hurricane week. Texas Tribune.
Due to the severe storm, Griddy was excluded from the market. This is the latest example of the massive financial consequences that are happening in Texas.
ERCOT announced in another market notice on Friday that, overall, the Texas power supplier failed to make the necessary payment of $2.12 billion. Electricity suppliers usually pay for ERCOT, which is responsible for operating the state’s power grid. forum. This time the arrears are more than usual because of the surge in hourly electricity bills caused by winter storms.
ERCOT has now decided to crack down on unpaid bills, prompting Griddy to close in Lone Star State.
Griddy said in a statement on Friday: “The same day ERCOT announced a loss of $2.1 billion, it decided to take this action only against one company representing a small part of the market and this gap.”
ERCOT said on Friday that it will use $800 million in the income account to make up some of the shortfall. The Wall Street Journal, The shortfall of US$1.32 billion still needs to be filled.
On Wednesday, as frustrated residents filed more and more lawsuits, ERCOT apologized to Texans in response to a serious blackout.
Weekly newspaper PUCT, ERCOT and Griddy have been contacted for comment.