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

Largs

GingerTim said:

masonic said:

GingerTim said:

Have any suppliers since late 2021 survived an Elexon notice? I can't think of any off the top of my head.

This is the first time I've ever heard of a supplier getting an Elexon notice. Would need to also understand which suppliers went bust with and without getting one to see if there's a relationship.

Together Energy and Bulb were the two most recent to go bust I think, Jan 2022 and Nov 2021. I don't think either had a notice from Elexon.

Neon Reef and Orbit, I think, defaulted out of Elexon's BSC in late 2021 which did for them - but I'm not sure if a notice was issued against them beforehand. Presumably one was as a warning, but I can't find it.

Yes, also Symbio, IGLOO Energy and Enstroga.

masonic

GingerTim said:

masonic said:

GingerTim said:

Have any suppliers since late 2021 survived an Elexon notice? I can't think of any off the top of my head.

This is the first time I've ever heard of a supplier getting an Elexon notice. Would need to also understand which suppliers went bust with and without getting one to see if there's a relationship.

Together Energy and Bulb were the two most recent to go bust I think, Jan 2022 and Nov 2021. I don't think either had a notice from Elexon.

Neon Reef and Orbit, I think, defaulted out of Elexon's BSC in late 2021 which did for them - but I'm not sure if a notice was issued against them beforehand. Presumably one was as a warning, but I can't find it.

That seems to be covered here: https://www.current-news.co.uk/five-suppliers-have-defaulted-out-of-elexons-bsc/

Edit: and some earlier suppliers: https://www.current-news.co.uk/omni-energy-simply-your-energy-and-maxen-power-supply-default-out-of-bsc/

Doesn't seem to be the same as what is happening here as other than notifying the industry, no action has been taken yet in the case of TE. But the article suggests this is the likely trajectory, with a ban on taking on new customers being a potential next step (which would almost always spell the end for a small firm).

Interesting also that three companies were defaulted after going into administration, which is not surprising.

Perhaps Elexon still believes TE is capable of sorting itself out, which is why it hasn't yet taken any steps towards expulsion.

This is helpful in understanding the process that is beginning to unfold.

BargainBear

Having a read through Elexon's data today I found a staggering figure under their Trading Disputes (A process which allows BSC Parties to amend Settlement to take account of issues that have come to light, and which affect Trading Charges).

2023-2024 there were 72 (75 in total according to their register of determinations) Trading Disputes raised and closed.  42 of the 72 disputes raised were upheld by the Trading Disputes Committee correcting a total error of approximately £4.1 million!

Looking through their register of determinations, which is essentially a log of the Trading Disputes raised, 2023-2024 saw 79 trading disputes raised with an estimated materiality of just under £33.3mil!  This is compared to 2023-2024 which had a total estimated materiality of £8.7mil across the 75 trading disputes raised; that's an increase of 282.75% in one year!

Unfortunately it doesn't say which supplier each Trading Dispute involves, but that's a lot of money being shifted around and having to be accounted for due to errors!

masonic

So I make it about 13 suppliers that were expelled from BSC and then subsequently went bust, and 3 suppliers that went bust before being expelled. All before late 2021. Two suppliers went bust without being expelled after late 2021 and none after being expelled.

TE is currently at the notice stage and is not yet being expelled. There is a 56 day process that needs to be followed before this happens.

Once expelled, a provider cannot register new meter points and therefore cannot take on new customers. At that point their days are numbered.

GingerTim

Prediction time - one to bookmark! - Tomato Energy will have ceased to exist by Easter.

bob2302

When I switched it was on the basis that for every month on Lifestyle I could spend a month on SOLR and still be in profit. On this basis Easter is a long way off.

Doc_N

GingerTim said:

Prediction time - one to bookmark! - Tomato Energy will have ceased to exist by Easter.

That long?

GingerTim

Doc_N said:

GingerTim said:

Prediction time - one to bookmark! - Tomato Energy will have ceased to exist by Easter.

That long?

Ha! Only on the basis that they appear to have nearly two months to get their act together.

Newbie_John

But isn't that just that their HH reporting should be around 73% but it's lower than that - and this was raised around the time when TE stopped accepting SMET1 customers. I believe that most of the SMET2 are fine, so if they were 55% before, then got few thousands SMET2 the ratio of correct reporting will go up - so they will hit their numbers by not doing anything.. new SMET2 can still sign up.

I will be more worried of the recent price jumps, as they charge 23p/kWh between 16-19 and the prices yesterday (and tomorrow by the look of it) were £3 this could potentially affect a lot a small company as they need to cover the difference. 100k customers * 5kWh * £3 = £1.5mln extra.. Totally guessed numbers btw.

QrizB

Several posts in this thread have mentioned Tomato not accepting switches from customers with SMETS1 meters.

I thought Ofgem required (via the domestic supply licence rules) that any supplier had to accept any domestic customer? They don't have to offer tariffs other than the SVT, but they can't just refuse a switch?

Am I wrong/mistaken?