Tomato Energy Collapse

Urgent Guidance for Businesses customers

In a reminder of the challenges in the UK’s energy market, Tomato Energy has officially ceased trading today, affecting its 8,400 business customers. The supplier faced a £1.5 million fine from regulator Ofgem for not maintaining adequate financial reserves and accumulated £3 million in debts, leading to administration filing last month without a rescue deal.

While this brings some uncertainty for affected businesses, Ofgem’s robust Supplier of Last Resort (SoLR) scheme ensures no company will lose its energy supply. Your operations continue uninterrupted, and any account credits transfer seamlessly. With potential adjustments in rates via temporary “deemed” contracts, this is an opportunity to take proactive steps. As a supportive guide exclusively for our Newscast24 network members supplied by Tomato Energy, we’ll outline exactly what to do right now and how to explore better contract options to potentially reduce costs and enhance your energy strategy.

Immediate Actions: What to Do Today

Don’t panic – your supply is protected. The transfer process is underway, but hold off on switching suppliers for now. Here’s your essential checklist tailored for network members:

• Monitor Ofgem’s Updates: Ofgem is appointing a new supplier soon. Check their website’s supplier failures section daily for announcements. Once appointed, the new supplier will contact you directly with details – no need for you to initiate anything.
• Avoid Premature Switches: Switching now could lead to billing issues or gaps. Wait for the official transfer to ensure everything goes smoothly under Ofgem’s protections.
• Gather Your Documents: Review your Tomato Energy contract end date, current rates, usage data, and meter readings. This information will help you negotiate better terms after the transfer. If your fixed-rate contract ends soon, you might exit early without penalties.
• Check for Credits and Debts: Access your Tomato Energy online portal if available, or contact their support while operational, to confirm balances. Ofgem protects credits for all customers, but verify any outstanding amounts to stay prepared.

By following these steps promptly, you’ll be well-positioned to control costs and options as a valued member of our network.

Next Steps: Navigating the Transfer and Exploring New Contracts

Once the new supplier is appointed – often a reliable provider based on past cases like Rebel Energy’s quick transfer – you’ll move automatically to a deemed contract. This temporary setup uses the new provider’s standard business rates, which might be slightly higher than your previous deal depending on the market.

The positive side? Deemed contracts offer full flexibility with no lock-in. Here’s how to make the most of this for your business:

1. Wait for Contact (1-7 Days): The new supplier will reach out soon after appointment with a welcome pack, including your account details, billing info, and deemed terms. Provide any requested meter readings quickly.
2. Assess Your Deemed Rates: Compare them to your old Tomato rates to understand any changes.
3. Shop Around Immediately: Switch tariffs or suppliers right away – no exit fees apply. Consider these factors:
   • Contract Length and Timing: If your original contract expires soon (e.g., within 30-90 days), look for short-term options or new fixed rates at current market levels. Longer contracts could secure savings if prices stabilize.
   • Tariff Types: Choose fixed-rate for stability or variable for adaptability. Green tariffs are a great, competitive choice for sustainable businesses.
   • Broker Support: Work with a reputable whole-of-market broker for tailored, no-cost quotes – they can negotiate on your behalf and aim for significant savings.
   • Bulk Discounts: For high-usage businesses (e.g., over 100,000 kWh/year), seek volume-based deals.
4. Timeline for Savings: Many businesses saved £500-£2,000 annually by switching within two weeks after similar transfers in recent years. Acting early helps capture better rates before any seasonal shifts.

Why This Matters for Your Business – And How to Get Support

Smaller suppliers like Tomato can offer great deals (up to £333/year savings vs. larger ones), but market volatility highlights the need for preparedness. Ofgem’s reforms have made failures rarer, dropping from 30 in 2021-22 to few today, but staying informed is key for businesses like yours in our network.

If rising costs are a concern, consider government-supported options:

• Business energy efficiency grants for upgrades like efficient lighting.
• Flexible billing under late payment protections.
• Free debt management advice from services like Citizens Advice.

Need Personalized Help? As part of our commitment to network members like you affected by Tomato Energy, Newscast24 is here to provide tailored support. Contact our Business Support Team for confidential guidance, broker connections, or a free energy audit