Gas and electricity provider Tomato Energy has gone out of business, prompting regulatory intervention to safeguard energy provision for 15,300 households and 8,400 businesses. Administrators were brought in at the close of October following the company’s accumulation of £3 million in debt and a prohibition on accepting new customers since April. As no rescue agreement was reached, Tomato Energy is shutting down. However, Ofgem assured customers that their energy supply will not be disrupted.
Rohan Churm, overseeing financial resilience and control, emphasized that Tomato Energy customers need not be concerned. Their energy service will continue uninterrupted, and any credit balances held by residential customers are safeguarded under Ofgem’s regulations. Efforts are underway to assign a new supplier for existing customers, who are advised not to switch providers in the interim. Once a new supplier is selected, customers will receive detailed communication.
Ofgem will notify Tomato Energy customers once a replacement supplier is appointed to take over the energy provision. Customers will automatically be placed on a “deemed” contract, potentially incurring higher costs, but with the flexibility to terminate at any point. Recent regulations mandate energy suppliers to maintain a financial safety buffer, a measure that has resulted in a reduction in company failures. Churm acknowledged the competitive nature of the market, recognizing that occasional company closures occur, underscoring the importance of safeguarding consumers and minimizing associated expenses.
