Tomato Energy Falls into Administration — What Businesses Should Do Next
It has been officially confirmed that UK energy supplier Tomato Energy has ceased trading and entered administration. The collapse impacts both domestic and business customers — putting many organisations in a position of uncertainty regarding their energy supply and contractual arrangements.
What happened
-
The regulator Ofgem announced that Tomato Energy has stopped trading, triggering the Supplier of Last Resort (SoLR) process to ensure continuity of supply.
-
In the months leading up to the collapse, Tomato Energy was under strict regulatory scrutiny: it was banned from taking on new customers earlier this year due to concerns about its liquidity and compliance.
-
The supplier reportedly owed millions in debts (reported around £3 million) and faced a proposed £1.5 million enforcement penalty from Ofgem for breaches of licence conditions.
-
The collapse affects approximately 15,300 domestic customers and 8,400 non-domestic (business) customers.
What this means for your business
As a business customer of Tomato Energy, here are the key points you need to know:
-
Your energy supply should continue uninterrupted. Under the SoLR mechanism, your supply will transfer to another supplier automatically.
-
Contractual details may change. You may be transferred onto a “default” contract with the new supplier. It’s important to review your new terms carefully and ask whether there are exit rights, early termination costs or other changes.
-
Assess any credit or arrears position. If you had credit with Tomato Energy, or were owed services, you’ll need to track how those are handled in the administration or transfer process. While domestic credits are directly protected under Ofgem rules, business customer arrangements may be more complex.
-
Keep all documentation. Retain your final invoices, contract terms with Tomato Energy, communications with the supplier/regulator, meter readings, and any relevant correspondence.
-
Don’t rush into a new contract yet. It may be wise to wait until you have full visibility of how your account is transferring, and then evaluate your options with the new supplier or alternative suppliers.
-
Review risk for the future. The failure of Tomato Energy is a reminder of the importance of supplier solvency, regulatory compliance and contractual protections. If you enter into a new supplier arrangement, ask about their financial standing and fallback provisions.
Why you should contact us
If your business was supplied by Tomato Energy and you are now facing uncertainty, we can help by :
-
Reviewing your current contract status and supply transfer arrangements.
-
Assessing whether you have rights or claims as a customer of an insolvent supplier.
-
Guiding you through your options for choosing a new supplier, understanding your terms and minimising disruption to your operations.
-
Supporting you with documentation, negotiation, and protecting your business interests during the transfer.
If your business was with Tomato Energy, please get in touch with us at andy@clearbridgeconsultancy.co.uk — we can work together to ensure you are protected, fully informed and have the best possible outcome from this situation.
