Tomato Energy collapses in move impacting nearly 24,000 customers

Supplier Tomato Energy has collapsed, leaving the industry watchdog to step in to protect supply for the provider’s 15,300 household and 8,400 business customers.

Regulator Ofgem said energy supply and funds paid into accounts, including credit balances, will be secured for Tomato Energy’s customers under the supplier of last resort safety net.

Customers of Basingstoke-based Tomato Energy are being advised not to switch as they will be contacted by their new supplier, which will be allocated by Ofgem in the coming days.

They are advised to take a meter reading before they are contacted by their new supplier.

Ofgem said household customers would also continue to be protected by the energy cap when switching to the new supplier.

Tomato Energy was banned from taking on new customers in April after building up debts of £3 million.

It was then hit with a proposed £1.5 million fine from Ofgem last month for failing to meet financial resilience rules and the firm filed a notice of intent to appoint administrators at the end of October.

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 they have been contacted by their new supplier, customers can ask to be put on the 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 said suppliers must now have capital to cover their risks and ring-fence certain areas of their finances such as customer credit balances under new rules.

Mr Churm added: “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.”

The latest collapse comes after Rebel Energy went bust in April, with the supplier of last resort safety net being used to protect its 80,000 household and 10,000 business customers.