Gas and electricity provider Tomato Energy has gone out of business, leading the regulatory watchdog to intervene and safeguard the energy supply for 15,300 households and 8,400 businesses.
Following the accumulation of £3 million in debt, administrators were appointed in late October, and the company was prohibited from accepting new customers since April. As a result, Tomato Energy is ceasing operations without a rescue plan, but Ofgem assured today that its numerous customers will not experience any disruption in their energy services.
Rohan Churm, the director responsible for financial resilience and control, emphasized that Tomato Energy’s customers need not be concerned. Their energy provision will remain uninterrupted, and any credit balances held by residential customers are safeguarded under Ofgem’s regulations.
Efforts are underway to swiftly designate a new supplier for all existing customers, advising them not to switch providers in the interim. Once a new supplier is appointed, customers will receive further communication.
Ofgem will notify Tomato Energy customers once a new supplier has been selected to assume responsibility for their energy provision. Customers will be placed on a “deemed” contract, potentially incurring higher costs, but with the flexibility to cancel at any time.
In response to the collapse of 30 energy firms within a year, energy suppliers are now mandated to maintain a financial safety net. While fewer companies have failed since the implementation of these regulations, Churm acknowledged the ongoing risk of company failures and underscored the priority of safeguarding consumers and minimizing associated expenses.