Texas's largest electric firm has filed for bankruptcy protection after being hit with $1.8 billion.
Texas’s largest electric firm has filed for bankruptcy protection after being hit with $1.8 billion.
The amount was derived from the state’s grid system following power providence issues. Moreover, the company has been facing high astronomical energy bills due to the free-market approach.
It has also happened because the value of energy has been seen at a fixed-rate at many places. Other than that, the volatile prices of energy have fallen prey to disrupted supply and demand rates. Record-breaking cold in February brought the states’ electrical grid to the brink of collapse. It also caused a complete blackout whereas the institutes tried their best to regain control over energy production. The increasing demand for energy resources has surged the prices in the energy market value.
One electric company, Griddy, has already been hit with a $1 billion class-action from customers. The electricity company was accused of price surges and issuing electricity bills of more than $17,000. While ERCOT predicts that billions of unpaid bills will create further tensions in the market.