A major UK energy provider, serving thousands of households and businesses, has suddenly collapsed, causing concern among customers and regulatory bodies alike. The firm, Tomato Energy, faced financial troubles, with debts exceeding £3 million, leading to its administration in late October. This news comes as a shock, especially given the company's previous ban from taking on new customers in April. The industry watchdog, Ofgem, has stepped in to protect the provider's 15,300 household and 8,400 business customers, ensuring their energy supply remains uninterrupted. Under the 'Supplier of Last Resort' safety net, domestic customers' funds, including credit balances, will be safeguarded, and they will be protected by the energy price cap when switching to a new supplier. Ofgem advises customers to wait for a new supplier to be appointed and contacted in the coming weeks before considering other options. Rohan Churm, Director for Financial Resilience and Control at Ofgem, reassures customers that their energy supply will not be disrupted, and their credit balances will remain protected. He emphasizes Ofgem's efforts to enhance the financial resilience of suppliers, implementing rules to withstand unexpected shocks. However, he also acknowledges that some companies may still fail, and the priority is to protect consumers and minimize associated costs. Tomato Energy's website provides support and advice, urging customers not to switch suppliers until a new one is appointed to ensure a smooth transition. This situation highlights the vulnerability of energy providers and the importance of regulatory oversight to safeguard consumers' interests.
