Gas and electricity provider Tomato Energy has gone under, prompting the intervention of the industry regulator to safeguard services for 15,300 residential and 8,400 commercial clients. The company’s financial woes, amassing £3 million in debt, led to the appointment of administrators in late October after being prohibited from acquiring new customers in April. Without a rescue plan in sight, Tomato Energy is now shutting down, yet existing customers are assured by Ofgem that their energy supply will remain uninterrupted and any credit balances will be safeguarded under regulatory provisions.

Rohan Churm, overseeing financial resilience and control, reassured Tomato Energy’s clientele that a new supplier will be swiftly appointed for their continued service. Ofgem will notify affected customers once a replacement supplier is designated, placing them on a “deemed” contract which may entail higher costs but can be terminated at will.

Following the collapse of 30 energy firms within a year, regulations now mandate energy suppliers to maintain a financial safety net. While the incidence of insolvencies has declined since the implementation of these rules, Churm acknowledged the inherent risks in the competitive market, emphasizing the need to shield consumers and minimize associated expenses in case of supplier failures.