Tomato Energy, a small British energy supplier offering low prices and an eco-friendly fuel mix, is in trouble.
The supplier has filed a ‘Notice of Intention to Appoint Administrator’, indicating it is likely to enter administration. Here’s what that means for Tomato Energy’s 14,000 customers.
What’s happening to Tomato Energy?
Tomato Energy has been in trouble for some time. In September, Ofgem, the UK’s energy regulator, banned the supplier from taking on new customers or offering energy tariff quotes.
This was because Tomato Energy had accrued more than £3 million of debt, and Ofgem was concerned about the company’s ability to maintain liquidity.
Now, Ofgem has imposed a £1.5 million fine on Tomato over its cash-flow problems and business practices.
In response, Tomato has announced it is investigating appointing an administrator – the first step towards the business being sold in an attempt to recoup the company’s losses.
More than 40 energy suppliers have closed in the past 4 years
In the 4 years since the start of the UK energy crisis in 2021, more than 40 UK energy suppliers have entered administration and stopped trading.
Among them is Rebel Energy, whose 90,000 customers were transferred to British Gas after the smaller supplier went bust in April of this year.
The high price of wholesale energy, alongside the tight control of supplier prices via the government’s energy price cap, has made it difficult for independent energy suppliers to thrive in a highly changeable market.
What should Tomato Energy customers do?
If you’re currently a customer of Tomato Energy – don’t panic! You’re not going to lose your home’s gas or electricity supply.
Ofgem operates a Supplier of Last Resort (SoLR) protocol when energy companies cease operations. This means that the closing supplier’s customers are transferred to the care of another energy company, with no interruption to their supply.
Customers will also keep any credit they currently have with Tomato Energy, and it will be applied to their account with the new supplier.
Right now, Tomato Energy customers are advised to do the following:
- Take energy meter readingsMake a record of your current energy meter readings, as well as your account balance and any outstanding payments or credits
- Don’t switch suppliersWhile Tomato Energy is in this state of flux, don’t switch to another supplier. The transfer to a new energy company will happen automatically, but trying to switch yourself ahead of time may result in delays, double-billing, or your current credit being lost.
- Keep paying your billsTomato Energy has not ceased trading yet, and you should keep paying your bills as normal. Non-payment could result in late fees or even your supply being disconnected.
How to switch your energy supplier and save
When Tomato Energy customers are transferred to a new supplier, they will be placed on a standard variable tariff, protected by the energy price cap.
This means customers won’t be hit by unexpected huge bills. Use our energy bill calculator to estimate how much you’ll pay on a price-cap controlled tariff.
Once the sale to a new energy supplier is complete and you’ve received your initial bills, you have the option to switch to another energy supplier and save. With the price cap expected to rise again before the end of 2026, any supplier offering a fixed tariff at or below the current price cap level is expected to save you money.
Fortunately, switching energy suppliers is simple and free. Read more about it in our guide, or book a free call with our Connections Experts and let them take you through the process from start to finish in less than fifteen minutes.
