Tomato Energy, which supplies 12,000 homes, faces collapse within hours after piling up millions in debt and a £1.5 million fine from the industry regulator.

The troubled firm filed a notice to appoint an administrator nine days ago, meaning it must resolve its financial mess by tomorrow or be forced into formal insolvency.

Deadline Looms as Financial Troubles Mount

The company was banned from taking new customers in April after racking up £3 million in debts. Since then, Tomato Energy has failed to fix its precarious finances.

When a firm files intent for administration, it typically has 10 days to sort things out. Tomato Energy is now on the brink, with the deadline expiring imminently. Without emergency funding or debt clearance in the next 24 hours, administrators will move in.

The administrators will try to rescue or sell the company, or wind it down while paying creditors from what’s left.

Ofgem Slaps £1.5 Million Fine for Breaking Rules

Far from improving, Tomato Energy’s financial woes deepened leading to a hefty £1.5 million fine on 13 October. Ofgem slammed the supplier for failing to maintain required capital reserves—rules designed to protect consumers.

Ofgem, however, assures customers they won’t lose their power supply if Tomato Energy collapses:

“Even if your supplier were to go bust they would not be cut off,” an Ofgem spokesperson said.

Customers to Be Switched Smoothly, Credit Protected

If Tomato Energy goes under, 12,000 customers will be automatically moved to a new supplier by Ofgem. They’ll initially be put on “deemed” contracts, which might cost more, but can switch anytime without penalty.

Crucially, credit balances are safe. Customers won’t lose any advance payments—even if the company folds. This safety net worked during the last energy crisis when dozens of suppliers failed.

Smaller Suppliers Under Pressure Amid Market Turmoil

Tomato Energy’s plight highlights the fragility of small UK suppliers, which often compete on price but operate on tight margins and risk collapse when prices spike.

During the energy crisis, 30 firms failed in under a year, leaving over two million households scrambling for new providers.

New rules enforced by Ofgem force suppliers to hold financial safety buffers, reducing collapse risks. While these measures have curbed failures, Tomato Energy shows problems still slip through.

What’s Next for Tomato Energy?

• Secure emergency funding at the last minute (unlikely)
• Enter administration with attempts at rescue or sale
• Be wound down with customers transferred to a stable provider

Customers should watch for updates from Tomato Energy and Ofgem on transfers and credit balances.

As the clock runs out, all eyes are on Ofgem’s safety net to keep 12,000 customers powered without disruption.