In the latest blow to Britain's struggling energy sector, Tomato Energy has become the latest supplier to cease trading, leaving thousands of customers facing uncertainty.
The collapse marks another casualty in the ongoing energy crisis that has already seen numerous providers fall by the wayside amid soaring wholesale prices and regulatory pressures.
What Happens to Tomato Energy Customers?
Approximately 7,900 domestic customers and a small number of business clients are affected by the supplier's sudden demise. The energy regulator Ofgem has swiftly stepped in to implement its safety net procedures.
Customers don't need to take immediate action - their energy supply will continue uninterrupted while Ofgem seeks a new supplier to take on the accounts.
Ofgem's Protection Plan in Action
Under Ofgem's Supplier of Last Resort (SoLR) process, affected customers will be transferred to a new energy provider. The regulator has assured that:
- Energy supplies remain secure during the transition
- Customer credit balances are protected
- A new supplier will be appointed as quickly as possible
- Customers should wait for contact from their new provider
The Wider Energy Crisis Context
Tomato Energy's collapse comes amid unprecedented challenges in the UK energy market. Soaring global wholesale prices, combined with the energy price cap limiting what suppliers can charge customers, have created a perfect storm for smaller providers.
This represents the latest in a string of energy company failures that have affected millions of British households over the past year.
What Customers Should Do Now
While waiting for their new supplier assignment, customers are advised to:
- Take a current meter reading
- Keep all relevant paperwork and account details
- Avoid switching suppliers until the transfer is complete
- Contact Citizens Advice if they need additional support
The energy market continues to face significant challenges, and further consolidation among suppliers is expected as the industry adapts to the new economic reality of higher energy costs.
