A Texas utility customer affected by the state’s devastating winter storms this month filed a $ 1 billion class action lawsuit against electricity retailer Griddy Energy LLC on Monday, accusing the company of “illegal price fraud” .
The plaintiff, Lisa Khoury, from Mont Belvieu, claims in the lawsuit that, although her monthly electricity bills from Griddy were around $ 200 to $ 250, the company automatically withdrew $ 1,200 from February 13 to 18 and its entire account was $ 9,546 from 1 to 19 February.
TEXAS RESIDENT HAS ALMOST $ 17,000 DEDUCTED FROM THE BANK ACCOUNT BY THE ENERGY COMPANY AFTER THE WINTER STORM
Khoury said he expressed concern about withdrawing and returning checks to Griddy, but he never received a response from the company and ultimately placed a request for suspension of payment at his bank on February 18.
The suit, which was filed at the 133rd Harris County District Court “on behalf of everyone else in a similar situation”, seeks $ 1 billion in monetary compensation.
In addition, the lawsuit accuses Griddy of violations of the Texas Misleading Business Practices Act and seeks an injunction to prevent Griddy from billing and receiving payment for excessive prices and to ensure the forgiveness of any late or unpaid bills from affected customers.
“Griddy accused Khoury in the middle of a disaster. She and her husband were left without power in the house from Wednesday, February 17, 2021 to Thursday, February 18, 2021. At the same time, Khoury hosted her parents and relatives , who is in her 80s, during the storm. Even so, she continued to minimize energy use because of high prices, “explains the process.
They noted that Gritty’s wholesale rate reached $ 9,000 per megawatt-hour from the pre-storm rate of $ 50 per megawatt-hour, and said Griddy told customers that he was “seeking relief from utility regulators. “after advising 29,000 customers to switch to another provider with a flat fee.
MILLIONS IN TEXAS FACING WATER PROBLEMS AS STILL BURNING THE EFFECTS OF MORTAL WINTER STORM
Khoury managed to switch suppliers on February 19, the suit said.
“Griddy knew he was charging consumers too much, that consumers would be harmed, and Griddy would be unfairly enriched by withholding customer payments,” he concludes.
A man in Arlington was surprised to receive a Griddy bill of more than $ 17,000 in just five days.
In a statement on Tuesday, Khoury’s lawyer, Derek Potts – who heads the Potts law firm in Houston – said that probably thousands of clients had received the bills and that class action would be “the most efficient and effective way for them to Griddy customers come together and fight this predatory price. “
“The case is tremendously important for the company, as it allows us to represent the people of our state, which has now faced not one, but two natural disasters at the same time, the most COVID-19 storm,” Potts told Fox News on Wednesday. market.
“What happened financially to all Griddy customers, both in terms of the exorbitant prices charged and the way they were charged from people’s bank accounts and credit cards, literally in the middle of a catastrophe, while many were without power, heating , and water, is clearly contrary to Texas laws in place to protect consumers, “he said.
Fox News contacted Griddy, but did not receive an immediate response.
However, in a statement to Reuters, a spokesman said the lawsuit “had no merit”, transferring the blame to the Texas Public Service Commission.
On its website, the company wrote on a blog that “transparency” was always her goal and that she was also “upset”. The company promised to fight prices.
Wholesale market prices have reached a state-imposed limit in response to increased demand, according to FOX 7 Austin.
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A request from the utility commission said that “energy prices should reflect [the] shortage of supply. “
Republican Governor Greg Abbott promised that reducing the bills would be a priority. On Sunday, the state utility commission acted to temporarily stop electric utilities from cutting power to customers who do not pay and from sending bills and cost estimates.
“Texans shouldn’t have to face an increase in their energy costs,” he tweeted.