Tomato Energy: Energy Supplier with 15000 Customers in danger of immediate collapse
Things have gone from bad to worse this week for Tomato Energy, which supplies 10,000 homes and 5,000 businesses across the UK as Ben Gunn, of Weedon Bec based energy consultancy Clear Utility Solutions explains.
On Wednesday 22/10 ELEXON, the not-for-profit operator of the UK Energy market, decided in a meeting on 22/10 to effectively exclude Tomato Energy from further participation in the energy market, after its credit position became significantly worse.
As recently as Monday 13/10 the stricken energy supplier issued a Notice of Intent that it was seeking to appoint administrators in a last attempt to avoid being forced into insolvency after being previously being banned from acquiring new customers in April over an unpaid debt of £3million. To further add to the pressure Tomato is under this week, OFGEM also issued a public notice that it was considering a further fine of £1.5million for financial mismanagement and a failure to adhere to key licencing conditions.
This latest news will no doubt be a further blow to the firm’s staff who will be concerned for their future employment with the company. But what of its customers? OFGEM have yet to formally step in, but it now seems likely they will be forced to act in the next few days and appoint a supplier of last resort. When this happens the customers of a failed energy supplier are moved to a more financially stable company. Should this occur, there is no interruption to energy supply and any credit balances are protected.
If you are the customer an energy supplier that goes bust, you are immediately placed on an out of contract tariff with the OFGEM appointed supplier but this tariff may be higher than you are currently paying. It is therefore crucial to read your meter immediately and look at agree a new tariff as soon as possible. Take note though, any export contracts that the supplier holds with its customers are not automatically moved and affected customer will need to arrange a new export contract themselves.
Tomato Energy will be the second major energy supplier to go bust this year after Rebel Energy filed for administration in April leaving the firm’s 90,000 customers without a supplier. At the height of the energy crises nearly 30 energy suppliers went bust prompting OFGEM to introduce new tighter rules around financial stability, and there have been fewer failures in recent times.
If you are affected by the above or need any further information, Clear Utility Solutions is on hand to help. As a local energy consultancy, they have been helping Northamptonshire businesses purchase energy and save money on their bills for the past five years and would be delighted to speak to you.