ERCOT revokes electricity provider Griddy's rights to operate due to 'payment breach'

The Electric Reliability Council of Texas, which manages Texas' power grid and has received massive backlash for their actions during last week's winter storm, has revoked electricity provider Griddy's rights to operate due to a "payment breach."

According to a notice issued by ERCOT on Friday, Griddy Energy must stop conducting activity under ERCOT protocols due to the breach.

After the unusual icy weather left millions of Texans without power, some reported seeing sky-high electricity bills. Many of those who have reported receiving large bills are customers of Griddy, which only operates in Texas.

A Chambers County resident recently filed a class-action lawsuit against Griddy, accusing the provider of price gouging customers during last week's freeze. She is seeking $1 billion in relief for affected customers.

Attorneys for Lisa Khoury said in the lawsuit that her bill spiked to $9,340 the week of the storm, compared to her average monthly bills that range from $200 to $250. Griddy drafted payments from Khoury's bank account several times, according to the lawsuit, pulling $1,200 before she blocked further charges from her bank. She still owes thousands.

Watch the full interview with Khoury in the video player above.

Griddy, which launched in 2017, charges $10 a month to give people a way to pay wholesale prices for electricity instead of a fixed rate. It warned customers of raising prices and urged them to switch providers. The company said wholesale prices returned to normal as of Feb. 20.

Griddy said it has 29,000 members. It's unclear how many other Texans also pay wholesale prices from other companies.

"We won't get the full picture on the financial devastation for maybe 30 to 90 days," said Ed Hirs, an energy fellow at the University of Houston.

SEE ALSO: Some Texans could be hit with spiking power bills

The electricity retailer recently addressed concerns of price gouging on its website and firmly placed the blame on the Public Utility Commission. The company states that it did not profit from raised prices.

SEE ALSO: Griddy customer in Houston slapped with $5,500 power bill this week

The Associated Press contributed to this report.