Tomato Energy had around 15,300 household and 8,400 business customers when it failed and these customers are now being moved to British Gas
Tomato Energy customers will be moved to British Gas after the energy firm collapsed last week.
Tomato Energy had around 15,300 household and 8,400 business customers when it failed. These customers will now be switched over to British Gas and moved to the energy price cap.
You will be able to switch to another supplier if you want and without exit fees, but Ofgem recommends waiting until the transfer is complete. Tomato Energy customers will be contacted over the coming days about the changes, the regulator said.
If you’re being moved, your energy supply will remain uninterrupted and any credit you have in your account will be protected. Tomato Energy was banned from taking on new customers in April after building up debts of £3million.
It was then hit with a proposed £1.5million 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 controls at Ofgem, said: “Minimising the disruption to customers is our top priority when a supplier exits the market, so I am pleased to confirm British Gas has been appointed to take on customers of Tomato Energy, and will work to move their accounts in the coming days and weeks.
“While I know customers may be concerned, they do not need to worry – any domestic credit balances are protected and there will be no interruption to their supply during this period.
“Tomato Energy customers will be placed onto a competitive tariff, and when the switch is complete they can consider what’s right for them and can shop around for other deals. They will also face no exit fees if they choose to switch to another supplier.”
Chris O’Shea, group chief executive of British Gas parent company Centrica, said: “Tomato’s demise marks the 31st supplier to collapse since 2021.
“Ofgem’s inaction on financial resilience has left customers exposed for too long, and every household in the UK has faced a £100 bill as a result of these failures.
“Urgent reform is needed. Ofgem must ensure all suppliers are robust, comply with capital adequacy rules, and ring-fence customer funds to prevent this cycle from repeating.
“Recent reports suggest Ofgem has relaxed the rules for large suppliers in financial distress, even as Tomato was allowed to fail. We need greater transparency to understand what is happening, enabling customers to decide whether suppliers deserve their trust.
“We are proud to step up for Tomato Energy’s customers — their energy supply is secure, their credit balances will be protected, and we will make their transition to British Gas seamless.”