Tomato Energy collapse: Next steps for customers

What has happened to Tomato Energy?

The Tomato Energy collapse means that about 15,300 households and 8,400 business customers have been moved to British Gas. This happened because the supplier went into administration. Ofgem stepped in with its supplier of last resort process to protect all customers and make sure their energy supply keeps going. This also helps to make sure their credit balances be safe and honoured.

Tomato Energy had been in a tough spot for some time. The company had £3 million in unpaid industry fees. It did not follow financial strength rules. A £1.5 million fine was suggested. In April, Ofgem stopped the company from getting new customers. This showed everyone that the supplier was in trouble. The plan was, by November 2025, people were set to officially come in and take charge of the business.

If you are not sure if your new tariff is good, you should look at other deals out there. You can check here for more options.

Why did Tomato Energy collapse?

Several things caused Tomato Energy to not do well:

Financial instability and unpaid debts

Tomato Energy did not pay about £3 million in charges owed in the industry. This shows that the company may have had trouble handling the money it needed for day-to-day running of its business.

Failure to comply with Ofgem’s resilience rules

Ofgem says suppliers must have strong financial controls. Tomato Energy did not meet these rules. They got a £1.5m fine. This made things harder for the company.

Inability to take on new customers

In April 2025, the regulator stopped Tomato Energy from getting new accounts. This made it tough for the supplier to make money and keep its business steady.

Wider pattern of supplier failures

Tomato Energy is the 31st energy supplier to go out of business since 2021. This is part of a bigger trend caused by higher costs, debt, and problems in how these companies work. The CEO of British Gas, Chris O’Shea, said this shows a continued problem. More suppliers with money troubles keep leaving the market.

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What happens when a supplier collapses?

When an energy company fails, Ofgem uses the last resort plan called Supplier of Last Resort (SOLR). This is done to make sure:

• The energy supply will keep going without any break.
• All customers move right away to a new supplier.
• Their credit balances stay safe.
• People with prepayment meters can still use them.
• The price cap for the default tariff will still cover customers.

British Gas became the new supplier after a careful review. The team looked at the company’s financial strength. They also checked the customer service offered and how well they could handle thousands of new accounts.

What does the switch to British Gas mean for domestic customers?

Your energy supply will continue as normal

There will be no break in the gas or electricity at your place. You do not have to get in touch with British Gas to make sure your home stays powered.

Your credit balance is protected

Any money you had with Tomato Energy is safe. British Gas will put it in your new account after they get all final information from the people in charge.

You will be moved to a British Gas deemed tariff

This is a standard variable tariff. It is covered by the energy price cap. This helps keep the energy price fair. You will get fair pricing until the change is finished.

You can switch at any time without exit fees

SOLR rules say that suppliers cannot make you pay exit fees if you are an affected customer.
After your account is ready, you can move to any other supplier at any time.

You will receive communication directly from British Gas

British Gas will reach out to all of their customers soon. They want to give updates in the next few days.

• Learn how to set up your account.
• Get all the details about your new tariff.
• Find out how credit gets moved over.
• See how to give a meter reading.
• See what choices you have if you want to switch supplier.

When you get your new British Gas tariff, look at the unit rates and see how they compare. Check energy prices. You may find that there is a cheaper deal out there.

When your new British Gas tariff arrives,
check the unit rates and compare energy prices to see if a cheaper deal is available

What about business customers?

About 8,400 business energy accounts are moving to British Gas now. The steps are much the same, but if you are a business customer, you need to know:

• You will be put on a new deemed business tariff.
• You can change to a new supplier after your account is set up.
• British Gas or the people who run things might ask for new meter readings.
• Credit balances for businesses are kept safe because of the SOLR process.

Business tariffs are not included in the domestic price cap. This means the rates can change by quite a lot. When British Gas reaches out to your business, you or your team should look at your new pricing right away.

Why has British Gas been appointed?

British Gas is now the UK’s biggest energy supplier. It has a lot of ways to run its business well. Ofgem picked British Gas for this reason:

• The company has good financial stability.
• They can take care of more than 20,000 accounts.
• There is strong customer service in place.
• They have the tools to manage credit transfers and update meters.
• The team has experience dealing with past SOLR events.

British Gas has already worked with other suppliers before. These include Gain Energy, Simplicity Energy, Together Energy, and Neon Reef. Because of this, British Gas knows how to help Tomato Energy customers move to them in a smooth way.

What do Tomato Energy customers need to do now?

1. Wait to hear from British Gas

You do not have to do anything right now. British Gas will send you welcome information that explains everything.

• How your account will be set up
• Your new tariff
• How to send in readings
• How credits will move to your account

2. Take a meter reading

It is not something you must do, but it is good to take a meter reading on the day you switch. This helps make sure you get a true bill when Tomato Energy sends their last numbers to British Gas.

3. Review your new tariff

Your deemed tariff might be close to what you paid before or a bit more. It is a standard variable tariff, and it falls under the default tariff price cap.

4. Compare your options

Once your account is up and running, you can change over right away. There are no fees. If wholesale prices go up, fixed tariffs can be a better and steadier option.

5. Keep an eye on credit transfer updates

Your credit balance will not move right away. Most of the time, it takes a few weeks for their team to check and finish all the accounts.

After your British Gas account starts, take some time to look at what else is out there. See if switching can help get your monthly bill down. After your British Gas account goes live, explore the market to see whether switching could cut your monthly bill.

What should customers NOT do?

Do not cancel your Direct Debit yet

If you stop your transfer before it is done, it can slow down payments or fixing credits.

Do not switch supplier until the transition is finished

You can change now if you want, but it is good to wait until British Gas makes your account ready. This way, you can be sure:

• You get accurate billing.
• Credit transfer goes smooth.
• There be no delays from missing data.

Do not worry about losing supply

Your gas and electricity will stay on during the whole process.

What tariff will I be on with British Gas?

All Tomato Energy customers will now be put on a British Gas variable tariff. There are some important things you should know.

• The energy price is kept in check by the price cap.
• Prices can be a bit different based on where you live.
• Standing charges and unit rates are looked at every three months.
• You are free to switch at any time. There are no exit fees.

British Gas might give you fixed tariffs when your account is set up. You do not have to take any offer if you do not want to.

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Will prices change after switching to British Gas?

Your old Tomato Energy plan could be cheaper or cost more, based on the time you signed up. The British Gas rules say you have to move to their standard variable rates.

Prices could change because:

• British Gas can have different unit rates based on where you live.
• Standing charges are not the same in every area.
• The energy price cap changes every three months.

But there are rules to make sure that people do not pay too much.

Why did Ofgem choose British Gas instead of another supplier?

Ofgem must choose a supplier that:

• Can manage a big flow of customers
• Has strong money stability
• Can keep credit balances safe
• Gives steady service with little trouble
• Has handled past supplier failures before

British Gas fits these needs. It has already helped many people whose energy suppliers stopped working since 2021. This makes British Gas a good option.

Will my smart meter still work?

Yes. Smart meters keep working. It depends on your device.

Smart meter types

• SMETS2 meters will keep working in smart mode.
• Older SMETS1 meters might switch to “dumb mode” for a while but they will still track how much you use rightly.

British Gas will let you know if your smart services can keep going right away or if they need to be updated.

Can I move to a fixed tariff after the transition?

Yes. After British Gas sets up your account, you can:

• Stay on the tariff that changes with the market.
• Pick a fixed deal from British Gas, if they offer one.
• Change to another supplier, and there are no exit fees.

If you want to be sure about the price during times when it goes up or down a lot, a fixed tariff can be good for you.

How do I find out which energy suppliers in the UK have recently gone bust?

The UK energy market has had a tough time since 2021. More than 30 energy companies have closed. This happened because the wholesale energy costs went up, licence conditions became harder, and there was a “perfect storm” with other pressures. It is good for customers to know which energy companies have shut down. That way, they know if they will be affected, especially if they use the Warm Home Discount Scheme, get SEG payments, or need steady Direct Debit payments.

Check Ofgem’s supplier failure updates

The UK’s energy regulator, Ofgem, keeps the most up-to-date list of suppliers that have left the market. If an old supplier fails, Ofgem uses a safety net. This is called the appointment of a Supplier of Last Resort. With this process, you get:

• The energy supply keeps going without stopping.
• Customer credit balances stay safe.
• A new energy supplier is picked quickly, on short notice.
• Small business customers move over safely.
• There are no extra costs for customers. You still pay just your normal unit of energy price.

You can go to Ofgem’s website to see all the suppliers that have failed. The list gets updated every time a company closes down. You will find the date when it last happened, the number of customers who were affected, and the name of the new supplier.

Check your old supplier’s website or online account

If you are not sure if your old supplier is still running, go to the old supplier’s website. A big banner or message will show up there as soon as the company is in trouble or shuts down. Many old suppliers keep their online account page going for a short time. This lets you check your account balance, look at old bills, and see meter details before everything moves over to a new company.

Monitor energy market news and industry updates

Energy news sites often talk about when smaller suppliers go out of business. This can happen because the wholesale market is not steady, or from rules and debt. A well-known example is the collapse of Rebel Energy. That event had an impact on thousands of customers. It needed someone new to step in fast. In these reports, they also say things like this:

• Reasons for the collapse
• The number of customers affected
• The new supplier chosen
• If electricity network operators need to step in
• If there is any risk of extra costs

It is good for customers to follow reliable industry sources. This can help people get early signs if there will be any instability. By keeping up with these sources, you can be aware of changes before others. This way, people have time to get ready and make the best choices for their work or business.

How Ofgem’s safety net protects customers

Ofgem’s safety net helps to move people to a new supplier fast, with:

• There will be no interruption to the supply.
• You do not need to find a new supplier by yourself.
• The new supplier will protect your customer credit balances.
• A new supplier will contact you in a few days.
• SEG licensees will still get smart export guarantee arrangements.

In the SOLR process, industry parties work together behind the scenes. They make sure everything goes well. This work includes talking with electricity network operators, administrators, and people who handle billing.

What happens after a supplier collapses?

After a failure is announced, customers should:

1. Wait for the new supplier to get in touch with them.
2. Take a meter reading to make sure the transfer is right.
3. Look at the new tariff and think about switching if needed.
4. Watch out for SEG rate updates if they export.
5. Reach out to the energy ombudsman if they still have issues later.

Customers can change to a better deal when the new supplier sets up their account. The Energy Switch Guarantee helps make things easy for most people. But it may not be simple for those with SEG payments or business contracts.

Why do suppliers keep going bust?

Many failures come from a mix of things:

• High wholesale energy costs mean that the bills go up for all. This affects how we use energy each day.
• Long-term price rises make it hard to plan for the future. It can hurt the business and the people big time.
• Low financial strength means the company may not be able to keep up if things go wrong.
• Tighter Ofgem licence conditions put extra rules on the business. The group has to be ready for new laws or policies.
• Quick growth without backing in money can hurt the business. If there is no support, debts or issues can be hard to fix.
• The market goes up and down a lot. This can change how people and companies use energy. Knowing these changes helps us all.
• When there are times of crisis, low-margin tariffs offer little breathing room. A simple profit can turn risky.
• Debt will build up if bill payments do not come in. This makes it tough for the group and their customers over time.

These problems in the UK energy market have made many suppliers leave. Small firms with less money find it hard when prices go up. So, they cannot stay in the market. The UK energy market has lost several smaller suppliers this way.

FAQs about the Tomato Energy collapse