A significant UK energy supplier, Tomato Energy, has ceased trading, leaving approximately 23,700 customers in need of a new provider. Regulator Ofgem has swiftly appointed British Gas as the new supplier under its Supplier of Last Resort (SoLR) process.
The Transfer of Customers
British Gas is now set to take on around 15,000 domestic and 8,000 non-domestic customers who were previously with Tomato Energy. This move is part of a established safety net procedure designed to ensure consumers face no interruption to their power supply.
The energy giant has confirmed it is already working to set up new accounts for these customers. In the coming days, it will contact them directly with details about the transition. There is no need for former Tomato Energy customers to proactively get in touch.
Protection for Consumers and Industry Criticism
Ofgem has assured all affected customers that their energy supply will continue without any disruption. Crucially, the regulator has confirmed that the credit balances of domestic customers will be fully protected. Customers are advised not to attempt to switch suppliers until their new account with British Gas is fully established.
This event has, however, sparked strong criticism from within the industry. Chris O'Shea, Group Chief Executive of Centrica (the parent company of British Gas), stated that Tomato's demise marks the 31st supplier to collapse since 2021.
He placed blame on Ofgem's "inaction on financial resilience," claiming it has left customers exposed and cost every UK household an estimated £100 extra on their bills to cover the failures of other suppliers. O'Shea called for urgent reform, including stricter capital adequacy rules and ring-fencing of customer funds to prevent a repeat of this cycle.
Looking Forward
Despite the criticism, the immediate focus remains on a smooth customer transition. Chris O'Shea concluded, "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."
This incident highlights the ongoing volatility within the UK's energy retail market and raises significant questions about the regulatory framework designed to protect consumers.
