Tomato Energy (Electric Only Supplier) - Too Good To Be True ?

Bendo

I suppose they have to rob Peter to pay Paul.

pete-20-11

Bendo said:

I suppose they have to rob Peter to pay Paul.

I'm not happy with that idea. 

Newbie_John

masonic said:

Newbie_John said:
But in 2022 there was a similar case:
https://www.ofgem.gov.uk/publications/logicor-energy-limited-final-order

and it was closed within a month (because they paid the invoice - sounds similar right? ):

Logicor Energy Ltd made full payment of its RO for 2021-22, including all applicable interest, thus ensuring compliance with its RO for 2021-2022.

Therefore, on 26 October 2022, the Authority made a decision not to make a FO.

That was an easy one, as it was a specific debt that was being chased. This time, they are being held to the requirements of a large energy supplier, and must maintain sufficient liquidity to pay their debts as they become due.

The CEO claimed it's been all paid?

masonic

Newbie_John said:

masonic said:

Newbie_John said:
But in 2022 there was a similar case:
https://www.ofgem.gov.uk/publications/logicor-energy-limited-final-order

and it was closed within a month (because they paid the invoice - sounds similar right? ):

Logicor Energy Ltd made full payment of its RO for 2021-22, including all applicable interest, thus ensuring compliance with its RO for 2021-2022.

Therefore, on 26 October 2022, the Authority made a decision not to make a FO.

That was an easy one, as it was a specific debt that was being chased. This time, they are being held to the requirements of a large energy supplier, and must maintain sufficient liquidity to pay their debts as they become due.

The CEO claimed it's been all paid?

He claimed the specific debts totalling £3m have now been paid, but there's no evidence the ongoing settlements issue is any better than when Elexon published its notice of default. The provisional order stated:

"Since late 2024, the Authority has been contacted by multiple industry parties in relation to the late or non-payment of financial liabilities by Tomato Energy. The Authority has engaged with Tomato Energy in respect of its obligations under the financial responsibility principle and its business practices in relation to meeting its financial liabilities and met with the licensee on 13 February 2025, 5 March 2025 and 7 April 2025. The licensee has repeatedly sought to assure the Authority that while it acknowledged that it had experienced cashflow challenges which had led to the late payment of financial liabilities, effective action had been taken to prevent a recurrence."

So in three separate meetings, representations were made that late payments were made, but that this wouldn't happen again, and yet it happened again.

We know that there is still a large cohort of customers whose data is not being retrieved, preventing them from being billed, and so it seems reasonable to assume the cashflow challenges continue. Furthermore, numerous £40-80 sums of compensation have had to be paid to customers whose switches to Tomato did not complete on time.

While we wait for a further indication from Ofgem regarding what they will do next, there are a few indications to look out for:

• Completion of the switches of those customers who have been blocked due to their DNO banning switches to Tomato (a good sign) or reversal back to their original supplier (a bad sign)
• Withdrawal of the policy whereby customers who are billed late have some or all of their bill written off (a good sign - for the survival of Tomato at least)
• The quote page becoming operational again (a good sign)
• Expulsion from BSC by Elexon (a very bad sign)

Ofgem has now had 9 working days to review the independent report into Tomato's liquidity and ability to meet its financial obligations. If things are all good now, it shouldn't be much longer before the provisional order is revoked and Tomato can get back to business as usual. If Tomato has complied with the other part of the order, its debts will all now be paid up and it will be in a position to settle all future invoices on time. Whereas if things aren't good, it will likely take us longer to find out what is going on.

MWT

... and the parent company (Senapt Limited) are now over 4 months late delivering their 2023 accounts to Companies House (a bad sign).

coupleuk

Ive just had another update from Tomato

As you know, I moved two meters under two addresses to them on September 1st.

They put both under one address and eventually put them both into correct addresses - though the original error is still there as I now have THREE meters under the 2 addresses.

MyWatts worked for the first 6 weeks and then stopped.

I have never had a bill; but do send twice monthly readings.

I gave up chasing them in the hope they remain in business and I eventually get all the use for free after 12 months.

Suddenly, they have sent me an email today - I welcome your thoughts on options;

Dear xxxx,

Our apologies for having left this so long without resolution.

Unfortunately when the billing team got back to me, they did advise that while your accounts are on the lifestyle tariff, we are unable to generate bills for them. We would only be able to do this if they were switched to Prime, which I know you opted out of.

​The query to get the third meter entry taken off your myWatts is still ongoing, so once this has been actioned I can update on that.

Sorry to be the bearer of bad news in this instance.

Yours sincerely,

My understanding is that they cannot do a thing and my feeling is just to sit and wait it out (while still sending in those readings).

I am also tempted to suggest to them that ALL usage and standing charges are credited as "goodwill" from September 1st to June 1st and to then go on to Lifestyle at that point (EDIT I just checked Lifestyle and it is VERY expensive) - What are your thoughts?

Based on the fact they'll be desperate to be rid of "problem accounts" I'm even thinking that they waive all charges and simply allow me to move supplier.

GingerTim

coupleuk said:

Ive just had another update from Tomato

As you know, I moved two meters under two addresses to them on September 1st.

They put both under one address and eventually put them both into correct addresses - though the original error is still there as I now have THREE meters under the 2 addresses.

MyWatts worked for the first 6 weeks and then stopped.

I have never had a bill; but do send twice monthly readings.

I gave up chasing them in the hope they remain in business and I eventually get all the use for free after 12 months.

Suddenly, they have sent me an email today - I welcome your thoughts on options;

Dear xxxx,

Our apologies for having left this so long without resolution.

Unfortunately when the billing team got back to me, they did advise that while your accounts are on the lifestyle tariff, we are unable to generate bills for them. We would only be able to do this if they were switched to Prime, which I know you opted out of.

​The query to get the third meter entry taken off your myWatts is still ongoing, so once this has been actioned I can update on that.

Sorry to be the bearer of bad news in this instance.

Yours sincerely,

My understanding is that they cannot do a thing and my feeling is just to sit and wait it out (while still sending in those readings).

I am also tempted to suggest to them that ALL usage and standing charges are credited as "goodwill" from September 1st to June 1st and to then go on to Lifestyle at that point (EDIT I just checked Lifestyle and it is VERY expensive) - What are your thoughts?

Based on the fact they'll be desperate to be rid of "problem accounts" I'm even thinking that they waive all charges and simply allow me to move supplier.

Asking them to give you 9 months' worth of free energy is certainly bold!

coupleuk

GingerTim said:

Asking them to give you 9 months' worth of free energy is certainly bold!

It certainly is - but given how far in the smelly stuff they are, my thinking is they'll be keen to remove as many "problem accounts" as they can.

They have already committed to offering 50% off any account not billed for 6 months and 25% (maybe 15% I cant remember) off any 3 months not billed. At 12 months they are free anyway.

So, it's not much of a leap for them to concede failure and move on.

GingerTim

coupleuk said:

GingerTim said:

Asking them to give you 9 months' worth of free energy is certainly bold!

It certainly is - but given how far in the smelly stuff they are, my thinking is they'll be keen to remove as many "problem accounts" as they can.

They have already committed to offering 50% off any account not billed for 6 months and 25% (maybe 15% I cant remember) off any 3 months not billed. At 12 months they are free anyway.

So, it's not much of a leap for them to concede failure and move on.

Mind you, when they go bust I don't think the appointed SOLR will be beholden to any of those commitments? (beyond not charging you beyond the last 12 months).

I stand to be corrected by those more knowledgeable, as always!

MeteredOut

Newbie_John said:

masonic said:

Newbie_John said:
But in 2022 there was a similar case:
https://www.ofgem.gov.uk/publications/logicor-energy-limited-final-order

and it was closed within a month (because they paid the invoice - sounds similar right? ):

Logicor Energy Ltd made full payment of its RO for 2021-22, including all applicable interest, thus ensuring compliance with its RO for 2021-2022.

Therefore, on 26 October 2022, the Authority made a decision not to make a FO.

That was an easy one, as it was a specific debt that was being chased. This time, they are being held to the requirements of a large energy supplier, and must maintain sufficient liquidity to pay their debts as they become due.

The CEO claimed it's been all paid?

"Cheque's in the post" ?