Update: February 26, 2021: Griddy has officially sent customers to POLR.
ElectricChoice.com has received reports from industry insiders that customers of Griddy will soon be informed that they are being sent to the Provider of Last Resort (POLR).
Worded another way: Griddy is reportedly about to end its relationship with thousands of its customers.
When an energy provider — in this case Griddy — sends a customer to a POLR, the provider is “releasing” them as a customer for good. It’s important to note that if you’re a current customer of Griddy and are notified about being sent to a Provider of Last Resort, you will NOT lose electric service. Your energy service is transferred over to a “fallback” entity, typically your local utility.
While your electricity will remain uninterrupted, you’ll pay much higher rates with a provider of last resort. If you’re transferred over to a POLR, it will become important to switch over to a new, long-term, fixed-rate provider as soon as possible.
Griddy has been in the media over the past week over its obscenely high energy bills:
— Brooke S. (@bbrooke1) February 22, 2021
We’ve seen reports of some customers receiving bills of $17,000 for a week of electricity. To make matters worse, some Griddy customers were on autopay, resulting in thousands of dollars being taken out of bank accounts without notice.
How did this happen?
Unfortunately, some Griddy customers may have believed they were buying ‘wholesale’ electricity, as Griddy’s website states. In fact, they were buying “market rate” electricity, not wholesale or bulk, and the risk of “market” pricing is that it can skyrocket — unfortunately, this has been made apparent to so many Texans over the past week.
As we’ve discussed on our featured section covering the events of the past couple of weeks, energy prices in Texas skyrocketed last week due to the record-breaking cold that impacted the stat . Wholesale energy prices reached their cap of $9,000 per megawatt-hour due to record-breaking demand and the lack of supply. Customers of Griddy — who were paying the market rate for electricity — were taken along for the ride.
Do you need help finding a new provider? We can help you find a new, fixed-rate electric plan for your home or business. Give us a call at 1-800-974-3020.