Texas electricity retailer Griddy heads for bankruptcy

Texas upstart electricity retailer Griddy Energy LLC, bereft of customers and facing litigation after charging large sums during the winter freeze that swept the state last month, is considering filing for bankruptcy, people said. close to the file.

Griddy is preparing to end his activities with a bankruptcy filing that could come in a few days, according to people familiar with the matter. Texas regulators have already kicked Griddy out of the state’s electricity market after the company passed large increases in electricity prices to customers during last month’s energy crisis.

While most Texas consumers buy electricity at fixed rates from municipal utilities and electricity retailers, Griddy offered access to variable electricity prices that have skyrocketed during the conditions. extreme winter weather. When spot prices briefly climbed to $ 9,000 per megawatt hour during the winter freeze, from an average of less than $ 22 last year, Griddy’s customers complained of receiving exorbitant bills, in connection with a wider backlash on how regulators and market players handled the weather emergency. .

Representatives for Griddy did not respond to requests for comment on Sunday.

The Electric Reliability Council of Texas, which operates the state grid, revoked Griddy’s operating rights and transferred customers elsewhere last month after defaulting on required payments.

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