TOMATO'S CLOSURE & NEW SUPPLIER. OFGEM ONCE AGAIN FAILED.

BingoB

When I read about the closure of Tomato Energy, I got some quotes from EDF & E-ON. On these sites, after I entered my address, they seemed to show I was now with British Gas & on their Flexible tariff.  What annoys me is that I was on one of Tomato's Lifestyle tariffs paying 5p/kwh for 5 hours and 14p fo 4hours which I need for my non-smart storage heaters. I should have been switched onto BGs nearest equivalent tariff surely?  

Ofgem has once again ignored the effect on consumers of it's actions by leaving Tomato no choice but to declare bankruptcy. There should be a process for fines to be outwith the company's Balance Sheet so they could pay it in installments. In anycase, it's a technicality and Ofgem have no right to inflict price rises and administrative burdens on the suppliers of last resort.

QrizB

BingoB said:

When I read about the closure of Tomato . I should have been switched onto BGs nearest equivalent tariff surely?  

No.

You'll also find that the SVT (BG Flexible) has an E7 option.

BingoB said:

Ofgem has once again ignored the effect on consumers of it's actions by leaving Tomato no choice but to declare bankruptcy.

Ofgem work to regulate the energy market. Protecting consumers is only a small part of their remit.

BingoB said:

In anycase, it's a technicality and Ofgem have no right to inflict price rises and administrative burdens on the suppliers of last resort.

Without something like the SoLR process, if your supplier went bust the only option would be to cut you off from the energy networks until you sign up with a new one.

MWT

With respect, it is the abject failure of Tomato to read meters, bill customers and set prices in line with their ability to cash-flow the business that has caused their failure, not Ofgem.

For once Ofgem acted early to limit the damage and the cost to all the other energy customers.

If you have indeed been moved to a standard flexible tariff with BG then that is totally normal in the SoLR process and from there you can pick a different tariff or move to a different supplier, but you are not going to find a direct equivalent tariff with any other supplier and certainly not at the same price as Tomato, but there will be options that are close. 

Scot_39

BingoB said:

When I read about the closure of Tomato Energy, I got some quotes from EDF & E-ON. On these sites, after I entered my address, they seemed to show I was now with British Gas & on their Flexible tariff.  What annoys me is that I was on one of Tomato's Lifestyle tariffs paying 5p/kwh for 5 hours and 14p fo 4hours which I need for my non-smart storage heaters. I should have been switched onto BGs nearest equivalent tariff surely?  

Ofgem has once again ignored the effect on consumers of it's actions by leaving Tomato no choice but to declare bankruptcy. There should be a process for fines to be outwith the company's Balance Sheet so they could pay it in installments. In anycase, it's a technicality and Ofgem have no right to inflict price rises and administrative burdens on the suppliers of last resort.

Ofgem gave Tomato months - many months - to resolve its financial - some related to meter interface of commercial / billing software of parent company afaik - problems.

The first formal notices from Ofgem over its finances started over 6m ago in April 2025.

Its not there to keep you supplied at any one rate other than the svt deemed tariff rate.  Ofgem dont directly regulated TOU or fixed tariffs only th3 deemed svt tariff as per the caps.

And after given 6m to resolve, TEs business model was deemed not sustainable, it wasnt able to meet its bills on time at times and it could not pass minimum financial standards that all suppliers have tolegally comply with to keep their supply licenses. 

And the SoLR process always defaults to Ofgem svt cap - single rate or e7 for profile class 2 multiratemeters iirc.

So if you were paying attention you have had six months to find a more suitable tariff - as several others do some form of TOU tariff - and if read the thread here - you will see many had jumped ship in last few weeks months as a result of Elexon / Ofgem - even at one stage HMRC notices for non payment.

At least some of which made national press.

You can now start searching and once BG has your account if they are SoLR - acpostin tbdother tnread suggests Octopus has acquired electric when had gas with one customer -

https://forums.moneysavingexpert.com/discussion/comment/81727850/#Comment_81727850


Regardless as puton deemed / svt - you can switch away to another choice.

But if you are going to choose a risky supplier, do expect to keep an eye on the news and forums to avoid a potential similar fate in future.

Over 4m went through SoLR in end with the last set of iirc 28/29 failures - if include Bulbs c1.6m in the total.

Some of TEs customers have deliberstely stayed to do so - its really not always been that big trauma for some who have gone through it before  - but some have certainly strongly advised others if you havent already - to keep all relevant meter readings to avoid false billing demands in future.

So take readings ASAP- digital timestamped photos if possible.

Look for a new supply option.

Switch as soon as able from tbe default solr (BG ?)?  to new supplier.

Swipe

If you have storage heaters your best bet will be Octopus' Snug TOU tariff or Utility Warehouse's E7 (very cheap night rates but very high day rates).

wrf12345

Energy companies pay circa £100 to get new customers, thus there would normally be some competition between these companies to become SOLR, and part of that competition might be to roll over contract rates - which has happened in the past - so Ofgem have failed to look after Tomato customers in that sense, though given BG's billing problems to expect them to do anything than the easier possible thing is perhaps a big ask. Also be aware that variable direct debit is not available to new BG customers so depending on billing cycles there may be a cash flow problem for customers, not to mention fantasy billing based on estimated usage. Their chat system does work but expect half an hour before you connect and a tendency to log you out of the account if it is idle for too long. On the upside, they are accurate on smart meter readings at the beginning and end of the contract, and you do get the credit back, if any.

bagand96

Ofgem have not yet announced who the Supplier of Last Resort is for Tomato Energy customers. It may be British Gas, it may not be.

It's not unusual when I put my postcode into comparison sites that they have my supplier and tariffs wrong.

You have no entitlement to your Tomato tariff or similar with an SoLR.  Your contract with Tomato is null and void now they've entered administration and lost their supply licence.  Ofgem's job is to protect your supply by appointing an SoLR, whilst also protecting the interests of the industry and all other consumers by minimising the costs of the SoLR process - costs which in the past have been passed on to all other electricity customers via standing charge.

Some previous SoLR's have honoured failed supplier's rates, some have come up with special tarrifs, some have ended up on SVT.  It will depend on the negotiations between Ofgem and the SoLR.

Finally, it is not fines from Ofgem that sank Tomato Energy.  They were a drop in the ocean.  It was selling energy cheaper than it cost them to buy it.  It was signing customers up to ToU tariffs without ensuring they have access to the necessary smart meter data to bill them.  It was failing to bill some customers for months on end, or even at all.  It was failing to pay their suppliers in the industry.