Griddy is a whole new way to buy power. Griddy Energy connects you directly to the grid, giving you access to the wholesale price of electricity – never marked up. They charge a flat monthly membership fee of $9.99 per month. All costs (electricity, delivery, taxes, credit card processing fees) get passed on to you without mark-up.
How Does Griddy Energy Work? (Griddy Energy Review)
Electricity is traded on the wholesale energy “spot” market.” The wholesale price changes every five minutes depending on real-time supply and demand. Sometimes the price goes up when everybody is using their AC on hot summer days, and sometimes it goes down when a lot of renewable energy is on the grid.
When you go Griddy, whatever the price is on the grid at that moment, is the price you will pay.
Now that can be mighty scary to some people. The price of electricity can spike dramatically depending on supply and demand. But over the long run, the wholesale price has come in 20%-30% below the Texas average* every year.
Wholesale electricity pricing is how many large industrial users and energy traders have been buying power for years. Since wholesale traders are “numbers people,” they look at the data and the averages.
With wholesale pricing like Griddy Energy, some days you may pay a high price, some days you may pay a low price. There is no limit to how high or low your price of electricity will be. You are paying the spot price of wholesale electricity based on supply and demand on the grid at that moment. But based on historical data, Griddy says you will pay less for your monthly electricity compared to the average Texas electricity rate, when looking across any 12 month period.
*As published by the U.S. Department of Energy (www.eia.gov)
Is Griddy Energy Prepaid Electricity?
Yes, Griddy is a prepaid electricity plan. There are no contracts and no early termination fees. You can leave anytime and get your prepaid balance refunded.
Griddy will charge your account for the cost of electricity when you use it, plus your delivery fees, taxes and Griddy membership.
When you sign up with Griddy Energy, you will put $49 into your Griddy account. This money will go toward your electricity usage, and each day your account balance will be reduced for the previous day’s usage. When your account balance drops below $25, Griddy will charge your credit card to refill your account. You can set the recharge amount to anything from $49 to $500, but we recommend setting it equal to your current monthly bill.
As a prepaid electricity provider, Griddy Energy won’t send you a monthly electricity bill. You can use the Griddy app to check your electricity cost, usage and rate at any time.
With the Griddy app you can see a summary of that month’s charges and how much you paid for your electricity down to the hour. You can also see how much you’ve saved versus the Texas average as well as a projection of when Griddy will recharge your prepaid electricity account.
What Makes Griddy Energy Different?
Griddy Energy is different because it’s a new way of buying electricity. For the first time, consumers get access to the wholesale price that historically was only available to large industrial customers and energy traders. Since there are no contracts and no break fees, you can leave anytime.
For years, Texas Retail Electricity Providers (REPs) have promoted fixed rate plans for consumers, to avoid fluctuations in the market. To support fixed price plans, REPs buy forward contracts.
These contracts lock in a specific price for a specific amount of electricity over a given amount of time (i.e a fixed rate). But forward contracts are sold with a risk premium embedded in the contract. The REP is essentially buying an insurance policy to lock in that fixed rate price, which adds to your cost.
Griddy offers an indexed price, tied to wholesale energy rates. Your rate links to a published index (in this case, the real time settlement point price). Your bill will be the cost of electricity at the time you use it, on the spot market. Griddy Energy customers receive the wholesale spot market price of energy.
Griddy’s approach to purchasing means their operations are more streamlined than with a traditional REP. That lower overhead means savings for you.
How Much Does Griddy Energy Cost?
Griddy costs $9.99 per month for a membership fee.
In addition you will pay for:
- Electricity Supply — the wholesale spot market price of electricity at the time you used it (pass-through)
- Delivery Costs from your local utility company (pass-through)
- Taxes (pass-through)
- Merchant Processing Fee (pass-through)
A note on the Merchant Processing Fee. This fee is 2.5% of the total amount charged plus 25 cents per payment. This is Griddy Energy’s cost to process your credit or debit card and they pass it through without markup. This additional cost is NOT reflected in the Griddy Energy electricity facts label, and not reflected in the price we post.
Compare Griddy Energy with Other Texas Electricity Plans
Because Griddy Energy is different, we want to make super sure that when you pick Griddy, you understand what you are getting.
The electricity rate shown on ElectricityPlans.com and in the Griddy Electricity Facts Label reflects the past 12 months of wholesale energy costs. Electricity Plans updates the Griddy Energy EFL and Griddy Energy rate quarterly.
This is not the price you will actually pay for electricity.
As we said above, most electricity plans you are familiar with are fixed rate plans. When you sign a contract for a fixed rate, that’s the rate you will get.
With Griddy Energy, your effective rate will be based on the actual real time wholesale cost of electricity, at the time you use it. The rate shown on ElectricityPlans.com and on the Griddy Energy Electricity Facts Label is just an example of what you could pay, based on historical information and what time of day a typical customer uses power.
This is a very important point. And you will need to confirm that you understand this, before you start the Griddy Energy enrollment process.
Is Griddy Right for Me?
Griddy Energy is a unique new market entrant in Texas electricity. But it’s not for everyone.
Griddy Energy may not be for you if you:
- Don’t have a smart phone.
- Are risk adverse. The excitement of winning can’t overcome the frustration of losing.
- Have very low usage (<250 kWhs/month)
- Use a large amount of energy during the day. (Energy prices tend to peak in the late afternoon. If your usage is high during the day, you will be using a lot of electricity during peak energy pricing.)
Griddy Energy may be for you if you:
- Like using apps on your smart phone to control your home.
- Like having lots of data and information at your fingertips.
- Understand that market pricing could be a wild ride. You’re focused on long-term savings, so you’re able to handle the short-term ups and downs that come with it.
- Want to enable your smart thermostat to adjust automatically based on wholesale energy price signals.
- Want to make the best possible use of your smart home technology (like Alexa or Google Home Hub) and your smart thermostat.
- Have moderate to high usage (>500 kWhs/month).
What is Griddy IFTTT?
If you’re a techie, you know what IFTTT (“if this then that”) technology does for you. Griddy IFTTT integration lets you automate your smart home devices to respond to the price of electricity.
Wholesale electricity prices will spike. There’s no doubt about that.
But when they do spike with IFTTT, your smart home devices can automatically adjust based on the cost of electricity. Griddy has pre-developed IFTTT applets to control thermostats from Honeywell and ecobee. This is a fantastic way to save with Griddy, since you can adjust your HVAC down when prices spike.
We hope this Griddy Energy Review has helped you understand what Griddy is and what Griddy does. Happy shopping!