An energy provider serving approximately 12,000 households is said to be on the verge of collapse. Tomato Energy has submitted a notice of intent to appoint an administrator, as reported by The Sun. This legal document signals the company’s imminent entry into administration, granting a temporary freeze that prevents creditors from taking legal actions for ten days. The filing occurred nine days ago, following Tomato Energy’s accumulation of £3 million in debts and its prohibition from accepting new customers by energy regulator Ofgem in April.
Recently, Ofgem warned Tomato Energy of a potential £1.5 million penalty for failing to meet financial obligations. Should an administrator assume control, efforts will be made to facilitate debt repayment by the company. If rescue attempts fail, Tomato Energy may face closure, a scenario in which Ofgem historically reallocates customers to alternative suppliers without disrupting energy provision. In prior energy crises, 30 companies collapsed within a year, necessitating new suppliers for over two million households.
This development coincides with another increase in energy bills, with the Ofgem price cap climbing from £1,720 to £1,755 for a typical dual fuel household using direct debit payment. The current price cap remains effective until December 31, subject to subsequent revisions. Consumers on standard variable rate (SVR) tariffs fall under the Ofgem price cap, unless they are under fixed-rate contracts. Although there is no ceiling on total energy costs, charges are based on actual gas and electricity consumption.
The Ofgem price cap establishes limits on gas and electricity unit charges, including fixed daily standing charges for network connection. The cap figure represents the expected annual expenditure for a household with average energy usage, assuming 2,700 kWh of electricity and 11,500 kWh of gas consumption over 12 months.