The families who saw their bills rise reportedly had variable-rate plans with Griddy, an electricity supplier in the state.
Griddy had recommended that customers switch to a different provider this week, warning them to seek fixed-rate plans instead, as it predicted the rising cost of electricity due to soaring demand. But many customers who tried to switch said other companies were not accepting new customers until weeks into the future, leaving them with their high bills.
Ty Williams told WFAA in Dallas that he normally spends $ 660 every month on his home, guest house, and office electricity bills. His new account after the rate spike hit more than $ 17,000.
He told the retailer that he eventually managed to switch providers and hoped to find a way to pay his huge bill. But Williams described the situation as “being held hostage and there’s nothing you can do about it.”
Some groups, such as Reliant Energy, say they are willing to partner with customers and offer flexible payment options after the storm.
The spike in people’s bills was due to skyrocketing power demands during the freezing cold, overloading Texas’s unprepared Electric Reliability Council, which controls power for about 90 percent of the state. That demand increased the price of power, but only those with variable rates saw their bills directly affected.
That meant that while millions were without power, variable-rate electric customers who still had electricity saw their bills go up. WFAA noted that variable-rate plans are rarer than fixed-rate plans in the state.
The news from Texas is contributing to the fallout from the blizzards, killing at least 47 people, leaving millions without power and even damaging thousands of sea turtles.