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The collapse of Tomato Energy

Tomato Energy, a UK energy supplier, has announced that it is ceasing to trade. The firm served around 15,000 domestic customers and 8,000 non-domestic customers at the time of its exit.  

Earlier signs of trouble included:

In April 2025 the regulator Ofgem banned Tomato Energy from taking on new customers due to concerns about its financial resilience, specifically debts of around £3 million. 

The regulator also proposed a fine of about £1.5 million relating to its cash-flow problems and business practices. 
On 5 November 2025, Ofgem issued a press release confirming that Tomato Energy had ceased trading, and that customers’ supplies would be protected under the “Supplier of Last Resort” process. 

According to commentary, this collapse marks another in what has become a wide pattern of smaller energy suppliers failing in recent years—challenged by volatile wholesale energy prices, regulatory burdens and the cost-of-living squeeze. 

What happens when an energy supplier fails
When an energy supplier such as Tomato Energy fails, Ofgem’s “Supplier of Last Resort” (SoLR) mechanism kicks in. R3+1 The key points for customers are:

Your energy supply will continue uninterrupted, even though your supplier has ceased trading. 
Domestic customers’ credit balances are protected — if you’re in credit with the failed supplier, that money is safeguarded under the rules. 

You’ll be transferred to a new supplier; in this case that new supplier is British Gas (see next section). 

Once the new supplier is fully set up, you are free to switch to another supplier if you wish — and you won’t incur exit fees just because you were transferred under the SoLR rules. 

Before switching, you are advised to wait until the transfer has been completed, so as to avoid administrative or billing complications. 

It is recommended to take a meter reading before the transfer, so that your new supplier can start with accurate data. 

British Gas steps in as the new supplier

On 10 November 2025, Ofgem announced that British Gas had been appointed to take over the customers of Tomato Energy under the SoLR process. Ofgem - According to the press release:

The switchover date for Tomato Energy customers was set as Sunday 9 November 2025. Ofgem

British Gas will contact customers in the coming days to explain how the transition is happening. 
Credit balances for domestic customers will be protected and transferred over. 
Customers previously with Tomato Energy will initially be placed on a “deemed” tariff with British Gas — i.e., a default tariff pending switching or choosing a new deal. 

British Gas has experience stepping in for other failed suppliers: it states it has helped over 700,000 customers from ten failed suppliers since 2021. Centrica Plc

For business (non-domestic) customers, British Gas’s communications emphasise:

Your supply continues.
They will need to get some information from the administrators of Tomato Energy, so things may take a little longer than usual. British Gas
You will be placed on a “deemed” contract (which may cost more than your previous contract) and you can switch to a better deal later if it suits you. 

What this means for customers
If you were a customer of Tomato Energy, here are some practical take-aways:

• Don’t panic. Your energy supply will not be cut off. The transfer to British Gas means continuity.
• Take a meter reading now (gas & electricity) and keep a record (photo if possible). This helps ensure your final bill from Tomato Energy (or early records under British Gas) is accurate.
• Check your account credit. If you were in credit with Tomato Energy, that credit will be transferred by British Gas to your new account. Save recent statements if you can. 
• Understand the tariff you’re moved onto. It may be more expensive than your previous deal with Tomato Energy — you will be placed on a default tariff with British Gas, and once the transfer is complete you can consider switching to a better deal. 
• Be cautious about switching too early. Although you are free to switch once British Gas has taken over, doing so before the new account is fully set up may cause issues. Wait for the contact from British Gas or your broker, who you trust
• If you had solar/export arrangements (for example, a tariff for exporting power from solar panels) check whether that will carry over. Some contracts, especially export tariffs, may not automatically transfer. 

Why did this happen – and what does it highlight?

The collapse of Tomato Energy underlines several pressures on small-to-medium energy suppliers in the UK market:

Wholesale energy price volatility continues to exert strain on suppliers, particularly those with thinner margins or smaller customer bases.
Regulatory requirements for capital resilience, credit-balance protection and customer-fund safeguarding have been strengthened — though some firms may still struggle to meet them. 
Competitive pressure: smaller suppliers often try to compete by offering lower tariffs or niche features, but that may leave them more exposed when market conditions shift.
The failure highlights that even though protections exist for consumers (via SoLR), the ultimate cost of supplier failure may be borne in part by other customers or via market adjustments (e.g., suppliers factoring in risk into their pricing). British Gas’s CEO (via its parent company) has pointed out that regulatory inaction on resilience may have costs for households.

At the same time, it’s a demonstration of how the safety mechanisms work: the SoLR process ensured customers didn’t lose supply, credit was protected, and transition was managed. As the regulator’s statement says: “some companies will still fail from time to time … our priority is making sure consumers are protected if that happens.” Ofgem

Conclusions
The exit of Tomato Energy and the transfer of its customer base to British Gas is a reminder of both the risks and the safety nets within the UK energy supply market. For affected customers, the key is to stay informed, take meter readings, check account balances and consider switching once the new supplier account is fully established.

Please call 01432 378690 for further advice or for prices