Tomato Energy, a gas and electricity company, has gone out of business, prompting the regulatory body to intervene to safeguard energy provision for its 15,300 residential and 8,400 commercial clients. The company went into administration in October due to accumulating debts of £3 million and a ban on acquiring new customers since April. Despite no rescue plan in place, Ofgem assured that Tomato Energy’s customers will not face any service disruptions as the closure unfolds.
Rohan Churm, the director overseeing financial resilience and control, assured customers that their energy supply will not be affected, and any credit balances held by domestic customers are safeguarded under Ofgem regulations. Efforts are underway to appoint a new supplier promptly for all existing customers, advising them not to switch providers in the interim. Once a new supplier is selected, customers will receive detailed communication.
Ofgem will reach out to Tomato Energy customers to announce the appointment of a new supplier. Customers will be placed on a “deemed” contract, potentially incurring higher costs, but they retain the flexibility to cancel at any time. Following the collapse of 30 energy firms in less than a year, energy suppliers are now mandated to maintain a financial safety reserve. While fewer companies have gone bankrupt since the implementation of these regulations, Churm emphasized the continuous focus on enhancing suppliers’ financial stability to protect consumers and minimize associated expenses.