The Basingstoke-based company is the second energy firm to collapse this year
Ofgem’s latest price cap came into force today(Image: GETTY)
Ofgem has issued an update to customers of a failed energy firm.
Tomato Energy collapsed last week, leaving the industry watchdog to step in to protect supply for the provider’s 15,300 household and 8,400 business customers.
The Basingstoke-based company was banned from taking on new customers in April after building up debts of £3 million.
It was then hit with a proposed £1.5 million fine from Ofgem last month for failing to meet financial resilience rules and the firm filed a notice of intent to appoint administrators at the end of October.
Last Wednesday, worried customers were advised not to switch and to wait for an update.
On Monday, Ofgem said energy supplies for these customers would continue as normal after they were switched over to British Gas on Sunday.
Any funds in the accounts of current and former domestic customers of the supplier would be protected, where they are in credit.
Domestic customers would also be protected by the energy price cap with their new supplier.
Tomato Energy customers will be contacted over the coming days about the changes, the regulator added.
Customers will not be charged exit fees if they now decide to switch to another supplier.
It is understood the company – which employs around 100 people – will formally appoint administrators in the coming days.
Rohan Churm, director for financial resilience and controls at Ofgem, told the PA news agency: “Minimising the disruption to customers is our top priority when a supplier exits the market, so I am pleased to confirm British Gas has been appointed to take on customers of Tomato Energy, and will work to move their accounts in the coming days and weeks.”
He continued: “While I know customers may be concerned, they do not need to worry – any domestic credit balances are protected and there will be no interruption to their supply during this period.
“Tomato Energy customers will be placed onto a competitive tariff, and when the switch is complete they can consider what’s right for them and can shop around for other deals.
“They will also face no exit fees if they choose to switch to another supplier.”
The latest collapse comes after Rebel Energy went bust in April, with the supplier of last resort safety net being used to protect its 80,000 household and 10,000 business customers.
