Another energy supplier has fallen victim to the ongoing crisis in the UK market, with Tomato Energy the latest casualty. The company has officially entered administration, joining the growing list of providers unable to withstand current market pressures.
While news of another supplier collapse may cause concern, customers can take comfort in Ofgem's robust safety net. The energy regulator has confirmed that all existing Tomato Energy customers will be automatically protected under its Supplier of Last Resort scheme.
What happens to Tomato Energy customers now?
Under Ofgem's protection framework, customers don't need to take immediate action. Their energy supply will continue uninterrupted, and any credit balances they hold with Tomato Energy are safeguarded.
The process works as follows:
- Ofgem will appoint a new supplier to take over Tomato Energy's customer accounts
- Customers will be contacted directly by their new provider
- Energy supply continues without interruption
- Protected credit balances transfer to the new supplier
What should affected customers do?
While the transfer process is automatic, energy experts recommend customers take these steps:
- Take a meter reading - Document your current usage to ensure accurate billing during the transition
- Wait for communication - Your new supplier will contact you with details of your new tariff and account information
- Review your new tariff - Once transferred, you're free to shop around for better deals without exit fees
- Keep existing documents - Maintain records of your account with Tomato Energy until the transfer is complete
The bigger picture in UK energy
Tomato Energy's collapse marks the latest in a series of supplier failures that have reshaped the UK energy landscape. Industry analysts point to sustained wholesale price volatility as the primary driver behind these market exits.
Ofgem continues to emphasise that consumer protection remains its top priority, with the safety net scheme designed specifically to handle such supplier failures without disrupting essential energy services to households.
Customers awaiting transfer to their new supplier are advised to maintain regular payments if they're on direct debit, while those with questions can contact Ofgem directly for guidance during the transition period.
