Gas and electric company Tomato Energy has gone out of business, prompting the energy regulator to intervene to safeguard supply for 15,300 households and 8,400 businesses.
Administrators were brought in at the end of October following the company accumulating £3 million in debt and being prohibited from accepting new customers in April. Without a rescue plan in place, Tomato Energy is now shutting down. However, according to Ofgem, the customers, both residential and business, will not experience any disruption in their energy services.
Rohan Churm, the director overseeing financial resilience and control, assured Tomato Energy customers that their energy provision is secure, and any credit balances on domestic customer accounts are safeguarded under Ofgem’s regulations.
Efforts are underway to appoint a new supplier for all existing customers swiftly, and customers are advised against switching providers in the interim. Once a new supplier is selected, customers will receive further details directly.
Ofgem will notify Tomato Energy customers once a new supplier is designated to take over the energy provision. Customers will be placed on a “deemed” contract, potentially incurring higher costs, but they are free to cancel at any time.
Following the collapse of 30 companies in less than a year, energy suppliers are now mandated to maintain a financial safety reserve. Despite a reduction in bankruptcies since the implementation of the new regulations, Churm emphasized the importance of ensuring consumer protection and minimizing associated expenses in case of supplier failures.