Griddy Was Charged With A $1 Billion Class Action Lawsuit For High Bills
Griddy, a wholesale Texas electric company, was charged with a class action lawsuit by its customers allegedly charged very high electricity bills amid the snowstorm that Texas was hit with recently.
The class action lawsuit against Griddy was filed by the lead plaintiff and Texas resident, Lisa Khoury, in February 2021.
According to the plaintiff, the electricity bill’s price surge came after the winter storms that hit Texas. Consumers were stunned to see the outrageous increase in their electricity bills.
The lawsuit aims to represent all affected customers who were charged with surprisingly high bills by Griddy.
Lisa Khoury alleges that the recent electricity bills sent by Griddy have reached an amount of up to $17,000.
The plaintiff contends that this amount is considerably enormous since the normal range of electricity per month is only $200 to $250.
The plaintiff asserts that Texas has suffered devastating winter snow storms recently. Despite this, the plaintiff argues that consumers have done their best to reduce their electricity consumption.
However, they were still surprised by the tremendous spike in the amount of their bill.
The plaintiff argues that the Texas electric company, Griddy, took advantage of the severe snowstorms to increase electricity charges.
The lawsuit declares that Griddy has breached the Texas Deceptive Trade Practices Act thru the use of their wholesale pricing scheme to gouge the price of electricity.
The lawsuit aims to seek a $1 billion compensation from Griddy for all the damages it has caused to affected consumers.
In addition to this, the lawsuit also intends to seek a court order that will prevent Griddy from charging customers with enormous electricity bills during calamities like snowstorms.
Wholesale Power Pricing Model
In the United States, only a limited number of states allow residents to pick their own power company.
Texas is one of the states that permit residents to do this under a deregulated system.
Under this deregulated system, Griddy and other electric companies offering wholesale electricity pricing models can enter the market.
Griddy relies on wholesale power markets to determine how much they will charge their consumers. Under this model, customers pay the “real-time” price from the power markets.
During the snowstorm, natural gas and turbines are not viable sources of power. Because of this, Griddy was forced to obtain energy from other sources that charged higher rates.
The surge in price was then passed on to consumers, which caused a massive spike in electricity bills from Griddy.
Meanwhile, customers of traditional electric companies who charge their customers a fixed-rate are protected during the incident.
Wholesale power companies like Griddy are currently under investigation due to the outrageous bill increase after the snowstorm this month.
Griddy stated on their website on February 18, 2021. According to the company, Texas’s Public Utility Commission is at fault for the tremendous price hike.
Griddy states that the wholesale price of electricity has increased to about 300 times the average amount, which forced them to increase costs.
Editor’s Note on Griddy Class Action Lawsuit:
This article is published to inform you of the latest class action lawsuit filed against Griddy for allegedly charging its customers with overpriced bills.
What are your thoughts on this piece? Do you know any Texas resident who has received an outrageous bill from Griddy?
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We suggest you to read our guide on How to start a Class Action Lawsuit.