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

MWT

Boohoo said:

ppc1 said:

Somebody has just posted this on the tomato energy Facebook group.  If it is true they are filing for insolvency. 

Case Search - Caseboard

Some people on MSE forum are going to be happy with this news ☺️ 

This isn't good news for any of us as one way or another the majority of non-customers are going to end up paying for this failure.

... at least this is not going to involve a lot of customer balances, but missed payments to the industry side of things will get shared out.

ppc1

Boohoo said:

ppc1 said:

Somebody has just posted this on the tomato energy Facebook group.  If it is true they are filing for insolvency. 

Case Search - Caseboard

Some people on MSE forum are going to be happy with this news ☺️ 

If it is true I think it is sad news for the industry but they cannot be allowed to run up more debts.  I left them three months ago.  

GingerTim

ppc1 said:

Boohoo said:

ppc1 said:

Somebody has just posted this on the tomato energy Facebook group.  If it is true they are filing for insolvency. 

Case Search - Caseboard

Some people on MSE forum are going to be happy with this news ☺️ 

If it is true I think it is sad news for the industry but they cannot be allowed to run up more debts.  I left them three months ago.  

I take the point about the desirability of competition, but I'm not sure it's a bad thing per se that a company run in such an incompetent, cowboy fashion shuts up shop.

masonic

The nature of the court application speaks for itself, and it was not disputed that the company had solvency issues (and difficulty attracting inward investment) before the £1.5m fine. Due to the way they structured the group of companies, it makes absolute sense to go down this path and jettison the one carrying the accumulated the liabilities. It is probably no coincidence that the court application was made the next working day after Ofgem notified them of the fine.

It's going to be bad news for those awaiting compensation, unfortunately, and those who have had billing problems, so hopefully these groups will be treated fairly.

Ray-von

Ofgem a disgrace - how can a 1.5 million fine help to aid a company with a cash flow issue 
i am with Tomato and they have been excellent in all matters 

Boohoo

masonic said:

The nature of the court application speaks for itself, and it was not disputed that the company had solvency issues (and difficulty attracting inward investment) before the £1.5m fine. Due to the way they structured the group of companies, it makes absolute sense to go down this path and jettison the one carrying the accumulated the liabilities. It is probably no coincidence that the court application was made the next working day after Ofgem notified them of the fine.

It's going to be bad news for those awaiting compensation, unfortunately, and those who have had billing problems, so hopefully these groups will be treated fairly.

What about the possibility of incorrect billing for customer's when whoever takes over and the meter readings may also be an issue.

I left them about the same time as you did and I have screenshots and bills as back up in case they went belly up.

masonic

Ray-von said:

Ofgem a disgrace - how can a 1.5 million fine help to aid a company with a cash flow issue 
i am with Tomato and they have been excellent in all matters 

Ofgem were not trying to help it survive. Quite the opposite. Its survival ran counter to their strategic priority to maintain an efficient, fair and flexible energy system.

masonic

Boohoo said:

masonic said:

The nature of the court application speaks for itself, and it was not disputed that the company had solvency issues (and difficulty attracting inward investment) before the £1.5m fine. Due to the way they structured the group of companies, it makes absolute sense to go down this path and jettison the one carrying the accumulated the liabilities. It is probably no coincidence that the court application was made the next working day after Ofgem notified them of the fine.

It's going to be bad news for those awaiting compensation, unfortunately, and those who have had billing problems, so hopefully these groups will be treated fairly.

What about the possibility of incorrect billing for customer's when whoever takes over and the meter readings may also be an issue.

I left them about the same time as you did and I have screenshots and bills as back up in case they went belly up.

I don't think think there is much risk of settled accounts being reopened, even in the event TE made billing errors, but it was wise of you to keep evidence just in case.

MWT

masonic said:

... it makes absolute sense to go down this path and jettison the one carrying the accumulated the liabilities. It is probably no coincidence that the court application was made the next working day after Ofgem notified them of the fine.

... it is also the only one with a significant revenue stream so that doesn't bode well for the rest.

... and yes, no coincidence on the timing, I suspect it forced the directors to acknowledge that they could no longer consider the business to be solvent, hence the action they have taken. 

Bendo

At least for most customers it isn't a huge issue.  Those on Tomatopia are in for an interesting ride though