Retail Supplier Ceases Pricing Texas Deals, Tells Channel Partner That Supplier Will Be Late On Payment
April 14, 2020
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Reporting by Paul Ring • firstname.lastname@example.org
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Liberty Power has ceased pricing new retail energy supply deals for an interim period, multiple sources have confirmed to EnergyChoiceMatters.com
Sources also confirmed that Liberty Power is seeking financing
Preston Ochsner, of Ochsner Interests, further confirmed to EnergyChoiceMatters.com that brokers have reported that Liberty had ceased pricing deals for the next 60 days or so, and further said that Liberty has informed at least one channel partner that Liberty would be late in paying such channel partner
Liberty Power removed its electricity offers from the Texas Power to Choose residential shopping site in late March, or on or about April 1.
Chad Price, Co-Chair of AEG Affiliated Energy Group's M&A Practice, told EnergyChoiceMatters.com that, "AEG can confirm that Liberty is not presently enrolling customers via many enrollment methods in, at the least, many of the main parts of Houston and Dallas, Texas."
However, Price further said, "but we believe (and have good reason to believe) they are still actively enrolling customers in other jurisdictions, including Connecticut, Mass, Illinois, Maryland, and Penn, etc."
"The lack of Texas enrollments could be related to a technical or systems issue, or possibly related to the new rules in Texas regarding disconnects, late fees and relief programs but disclaim any statement as to why or for how long," Price told EnergyChoiceMatters.com
Sources told EnergyChoiceMatters.com that Liberty had, prior to the recent COVID-19 pandemic, been seeking a new credit facility, but the pressures from the impact of the pandemic on the retail energy markets may have created a more immediate need for financing.
Liberty currently has a credit facility agreement with Shell
Shell recently announced that it would cut cash capital expenditures by $5 billion as one of Shell's measures in response to the pandemic, reducing cash capital expenditures to $20 billion for 2020, from a planned level of around $25 billion. Shell further announced a reduction of underlying operating costs by $3-4 billion per annum over the next 12 months compared to 2019 levels
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SparkSpread first reported earlier today Liberty had retained a boutique advisor to raise financing
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