An energy provider serving approximately 12,000 households is reportedly facing imminent collapse. Tomato Energy has submitted a notice of intent to appoint an administrator, as disclosed by The Sun. This legal filing signals the company’s impending entry into administration, granting a temporary freeze on legal actions by creditors for a ten-day period. The notice was lodged by Tomato Energy nine days ago, following the accumulation of £3 million in debts and a ban on accepting new customers imposed by energy regulator Ofgem in April.
Recently, Ofgem warned Tomato Energy of a potential £1.5 million penalty for failing to meet its financial obligations. In the event an administrator assumes control of Tomato Energy, efforts will be made to facilitate debt repayment. Should rescue attempts fail, the company may face closure. Historically, when energy suppliers have gone bankrupt, Ofgem has overseen the transfer of customers to alternative providers to ensure uninterrupted service.
This development coincides with a rise in energy costs, with the Ofgem price cap climbing from £1,720 to £1,755 for a standard dual fuel household paying via direct debit. The price cap remains effective until December 31, subject to subsequent revisions. Consumers on standard variable rate tariffs are shielded by the Ofgem price cap unless locked into fixed-rate agreements.
Although there is a price cap on unit rates and standing charges, the total energy bill is contingent on actual usage. The price cap delineates the maximum amount a typical household, consuming 2,700 kWh of electricity and 11,500 kWh of gas annually, can expect to pay.