Tomato Energy has today announced it is ceasing to
trade.
Tomato Energy supplies around 15,300 domestic customers, and
8,400 non-domestic customers.
Under The Supplier of Last Resort (SoLR) safety net, customers'
energy supply will continue and funds that domestic customers
have paid into their accounts, including existing credit
balances, will be protected. Domestic customers will also be
protected by the energy price cap when being switched to a new
supplier.
Customers of Tomato Energy will be contacted by their new
supplier, which will be allocated by Ofgem in the coming
days.
Ofgem's advice to affected customers in the meantime is to:
- Wait until a new supplier has been appointed and you have
been contacted by them in the following weeks before looking to
switch to another energy supplier.
- Take a meter reading ready for when your new supplier
contacts you.
This will make the process of transferring customers over to the
chosen supplier and honouring any funds that domestic customers
have paid into their accounts, where they are in credit, as
smooth as possible.
Since the energy crisis, Ofgem has strengthened the rules so that
suppliers are more resilient to shocks and less likely to fail.
Suppliers must have capital to cover their risks and ring-fence
certain aspects of their finances such as customer credit
balances.
As a result, the market is becoming much more resilient, however
some companies will still fail occasionally. The SoLR safety net
ensures affected customers face as little disruption as
possible.
Rohan Churm, Director for Financial Resilience and
Control, said:
“I want to reassure Tomato Energy customers that
they do not need to worry. They will not see any disruption to
their energy supply, and any credit domestic customers have on
their accounts remains protected under Ofgem's rules.
“We are working quickly to appoint a new supplier for all
existing customers, and they should not switch in the meantime.
Once appointed, a new supplier will be in touch with further
information.
“We have worked hard to improve the financial resilience of
suppliers in recent years, implementing a series of rules to make
sure they can weather unexpected shocks. But like any competitive
market, some companies will still fail from time to time, and our
priority is making sure consumers are protected if that happens
and that any associated costs are minimised.”
ENDS
Notes to editors
- Tomato Energy customers should take meter readings today and
wait until their new supplier contacts them. Once they have been
contacted, customers can ask to be put on their new supplier's
cheapest deal or look for an alternative deal from another
supplier. They will not be charged exit fees for switching away
from their new supplier.
- Ofgem's Supplier of Last Resort (SoLR) safety net will make
sure customers energy supply will continue as normal, domestic
customers' credit balances of funds they have paid in are
protected and that the process in moving over to the appointed
supplier is as smooth and hassle free as possible.
- In September 2023, Ofgem announced its decision to introduce
common minimum capital requirements for domestic suppliers, and
modify the licence so that Ofgem can direct suppliers to
ringfence customer credit balances when in the consumer interest.
These reforms are part of a package of measures to build the
capitalisation of the sector, enhance resilience to external
shocks and put the retail market on a solid foundation to deliver
the innovation, high standards and consumer outcomes needed to
achieve our principal objective: to protect the interests of
existing and future consumers.
- Earlier this year Ofgem also introduced the Supplier of Last Resort
(SoLR) Levy Offset rule, which will ensure the costs claimed
by energy companies under the SoLR levy, for taking on customers
from firms that go out of business, will be the liability of the
failed supplier. The new rule will ensure that, where funds
remain available, keeping costs low for customers will remain the
top priority.
Enforcement activity
- In April Ofgem published a provisional order against Tomato
Energy and launched an investigation into whether Tomato is in
compliance with rules around operational capability, maintaining
sufficient levels of Capital and Liquidity and reporting
financial Trigger Points appropriately to the
Authority.
- Ofgem confirmed the PO in July, which means it would not
lapse, and would remain in place Ofgem was satisfied that the
company has brought itself into full compliance with its
regulatory obligations.
- As part of a Provisional Order, Ofgem can set specific
deadlines for Tomato Energy to demonstrate compliance with
specific elements of the PO. Tomato initially missed its first
deadline on 8 May 2025, resulting in the decision to confirm the
provisional order in July.
- The second deadline for Tomato to comply with SLC 4B.1
(obtaining and maintaining sufficient Liquidity to meet its
reasonably anticipated financial liabilities on an ongoing basis)
ended on 31 August 2025. Ofgem issued a notice of failure
to comply in September, and if Tomato Energy failed to rectify
areas of non-compliance within 3 months, the regulator reserved
the right to consider revoking its supply licence.
- on Monday 14 October Ofgem published a Notice of Proposal to
Impose a Financial Penalty of £1.5m, following Tomato's failure
to comply with Ofgem's rules on obtaining and maintaining
sufficient levels of Capital and Liquidity. This was a
proposed penalty, and Tomato or any other party
had 21 days to make any representations.
- On Wednesday 5 November Tomato confirmed it had entered
administration, and Ofgem initiated the Supplier of Last Resort
(SoLR) process.
