A Message From Our CEO
A Message From Our CEO
I’m Greg Craig, Founder and CEO of Griddy. I wanted to share some important information about the extended peak pricing we’ve seen in Texas. We understand that many of our Griddy members have questions about their account and our Member Services Team is working really hard to get each member’s inquiries addressed as soon as we possibly can.
As you know, this has been an unprecedented time of peak pricing in Texas. It’s important to remember that Griddy does NOT set the price of electricity, nor do we keep ANY portion of it. That price is set by the grid operator, ERCOT, based on real-time supply and demand on the grid. And the money you pay for electricity gets passed straight through to the grid operator and ultimately to the generators. The only money Griddy makes is our $9.99 a month membership.
The Griddy model was built to take advantage of the low wholesale cost of power, and in previous periods, the wholesale price has significantly outperformed the Texas average year after year. In the last week or so, market conditions in Texas have brought extended peaks. Even with this unprecedented pricing, the Griddy rate has still outperformed the Texas average over the last 12 months. But these sustained peaks are causing many of our members’ bills to go way up in the near term. We are truly sorry for the short-term price run-up and are doing three things right now to help our members.
First, we refunded the August Griddy membership charge of $9.99. While it’s a small amount per member, it’s all we make, so we are receiving zero revenue for the month of August.
Second, we are stressing to our members in many communications to use the tools and information we provide: real-time prices, price alerts & smart home automation – to adjust consumption down during the high peak period. This is really important. The vast majority of peaks are occurring between 2-6pm during weekdays. Reducing or avoiding power use during this period will greatly improve pricing. Many Griddy members have done so and have greatly minimized their bills by controlling one of the two drivers of a bill: consumption. We thank our members who’ve done so, and for those who are using social media to stress this to other members.
Finally, we are working hard to implement additions to the Griddy model to address these peak periods when and if they occur again in the future.
While we have many members who have used the tools and information Griddy provides to keep their bills low, we also know that many of our members have not been able to reduce consumption at these peak times, and their bills have been much bigger than they expected. Griddy members that have been with us for a while have racked up considerable savings to offset a high-priced August. For those members who have just recently joined Griddy, we apologize for the ugly first month, and absolutely understand the frustration. Many of you have reached out to our Member Services Team with questions, or to cancel and switch suppliers. Our Member Services Team is working around the clock to get every member’s questions answered or to assist with a switch. We will reach out to each member who has contacted us…so please bear with us while we do so, and thank you for your understanding.
In the meantime, if you wish to switch suppliers, you can do so without Griddy’s help. Once you enroll with a new supplier, it will automatically end your Griddy membership. While we don’t want members to leave, and remain confident that the Griddy price will still beat the Texas average over any 12 month period, we also promote the idea that people should be able to come and go as they please, which is why Griddy has no contracts and therefore no contract break fees. If you do switch, you may continue to receive charges for up to five business days while your local utility finalizes your usage data. You will only be charged for usage while you were a Griddy member. Any remaining balance in your account will be refunded to you within 10 business days.
This has been a rough month and we are really sorry for those Griddy members who are disappointed. For the bulk of our members who have expressed support and confidence in the Griddy model, we are eternally grateful for your loyalty and look forward to returning to a more normal pricing environment that yields savings month after month.