If Liberty Power supplies your residential or commercial power, you may need to shop for a new electricity contract soon.
That’s because on April 18, 2021, Liberty Power terminated all of their employees via email. All 100 of them. That means no one is running the ship.
And on April 21, 2021, Liberty Power declared bankruptcy due to excessive financial losses during February 2021, when a cold front put Texas into a deep freeze.
Here’s what you need to know if you’re a Liberty Power customer, and what to do next.
About Liberty Power
Liberty Power is based in Fort Lauderdale. Their initial focus was providing small and medium-sized businesses with low-cost energy and exceptional customer service. At one point, the company served hundreds of thousands of customers in 11 states and 50 utility territories, according to its website.
Unfortunately, their growth wasn’t without issues, including financing problems with their creditors and having to find a new line of credit in the middle of a pandemic. Plus they experienced a high number of consumer complaints due to Liberty Power’s reliance on door to door and telemarketing vendors.
In February 2021, the company experienced large financial losses during a winter weather event in Texas. As a result, Liberty Power fired all of their employees on April 18, 2021. And they declared bankruptcy on April 21, 2021.
What Happens to My Contract With Liberty Power?
If you’re a Liberty Power customer, you’re now in the uncomfortable position of not having an electricity supplier. Maybe.
The company has filed for bankruptcy, listing assets of $50-$100 million, and liabilities of $100-$500 million. They haven’t told any of the state Public Utility Commissions that they are giving up their license. And they still have offers live on their web site. But it’s hard to shut all that down when you’ve fired everyone and the doors are locked.
The company’s board may be negotiating behind the scenes to sell your electricity contract to another retail electricity provider. Or maybe their financial backers will take ownership of your contract. We don’t know. But it really leaves the question of what comes next.
So we called Liberty Power customer service at 866-269-3799 and asked, “What’s going on?”
Yes, someone answered the phone. But that person is at an outsourced call center. He said that they don’t have any information to provide. But he also said to watch the mail for an official notice.
What are your options if Liberty Power is your supplier?
Liberty Power Customer in Connecticut
If you are a residential Liberty Power customer in Connecticut, check your bill to see if you are in a contract or not. If you’re in a contract, consider your options. Your electricity contract has a maximum early termination fee of $50, by Connecticut law. And if you’re not in a contract, you should shop immediately. You can easily shop online for a new residential electricity supplier in Connecticut.
If you are a commercial Liberty Power customer in Connecticut and your electricity plan has expired, shop immediately to lock in a new fixed rate electricity plan. You can shop online to compare commercial electricity rates in Connecticut.
If you are a commercial Liberty Power customer in Connecticut, and you are in a contact, your options are more complicated. Is your contract still valid? You may have an early termination penalty if you switch away from them. That early termination penalty would be very hard for them to collect, since they don’t have any employees. But if they sell your contract to another provider, you may have an issue with a bill collector.
Your best bet is to talk to an energy expert that knows about electricity contracts. Call us at 844-214-5559.
Liberty Power Customer in Texas
If you’re a Liberty Power customer in Texas, you’re one of 25,000 consumers that may need a new electricity company. That’s based on news reports that the company had 100,000 customers remaining when they shut their doors, with 20-25% of them from Texas.
If Liberty Power is your electricity provider for your Texas home, check your most recent bill to find out when your electricity contract expires. Then shop online for the best electricity rate for your home, or sign up for renewal reminders so you shop for new service.
But most of their marketing in Texas focused on small to medium business owners. Their door to door marketing team may have paid your company a visit.
If Liberty Power is the electricity provider for your business, you need to find out your contract end date.
To find this out, check your computer for a copy of your Liberty Power contract, which you may have received via email. Or, take a look at your electricity bill.
If your bill says variable rate, flex rate or month to month, and that’s not what you signed up for? Your contract has expired. You can immediately shop online for a new business electricity rate. You should lock in a new fixed rate before the harsh Texas summer, to avoid paying wholesale energy rates.
If you find that you are still in a contract for your power, your best bet it to read the fine print about an early termination fee. Then contact our energy professionals to talk about your options. We can help you find a new supplier for your commercial electricity contract. Call us at 844-214-5559.