What is griddy?

Griddy is a retail electricity provider that offers a unique pricing model known as wholesale pass-through pricing. This means that customers are charged a fixed monthly fee, known as a membership fee, and then pay the wholesale price of electricity on an hourly basis. This can result in significant savings for customers when wholesale prices are low, but can also lead to high bills during times of high demand.

Griddy gained attention in 2019 during a heatwave in Texas when wholesale electricity prices surged, leading to some customers receiving bills in the thousands of dollars. This sparked criticism and complaints against the company, leading to investigations by the Texas Public Utility Commission and ultimately resulting in Griddy being banned from the state's power market.

Overall, Griddy's pricing model has sparked debate about the benefits and risks of variable pricing for electricity and the importance of transparency and consumer protections in the retail energy market.