(Reuters) – Texas energy retailer Griddy Energy LLC is planning to file for bankruptcy after the state network operator cut the company’s access to customers for unpaid accounts after the Texas freeze, sources familiar with the matter told Wall Street. Journal.
Company officials were not immediately available for comment.
Griddy sold energy to customers at market prices. When energy prices skyrocketed to $ 9,000 per megawatt / hour (MWh) and remained at that high level for days during the extreme cold in February, some customers received monthly bills of more than $ 10,000.
This compares to an average energy price of $ 22 per MWh in 2020 at the Texas Electric Reliability Council (ERCOT), which operates the state’s power grid.
“ERCOT took our members and effectively closed Griddy,” the company told customers on its website after ERCOT transferred some 10,000 Griddy customers to others.
In addition to losing his clients, the Texas attorney general is suing Griddy, saying he was involved in deceptive business practices by issuing excessive accounts.
Griddy said it asked customers to switch to other providers at a fixed rate before the worst of the storm in February.
Texas’ high freezing gas and light bills have already forced two other companies to seek bankruptcy protection – Just Energy Group Inc and Brazos Electric Power Cooperative Inc.
Scott DiSavino’s report; Editing by Kim Coghill