Tomato Energy Faces Administration Following £1.5m Ofgem Penalty
Ofgem Escalates Enforcement Action
Just two weeks after confirming a £1.5m redress order for service and compliance failings, Ofgem has now published a proposal to impose a financial penalty on Tomato Energy Limited for failing to maintain sufficient liquidity.
Regulatory Finding: The regulator found that Tomato Energy did not meet standard licence conditions requiring it to “obtain and maintain liquidity at a level that enables it to pay its ongoing financial liabilities.”
This marks another major breach following Ofgem’s April 2025 provisional order, which had already banned the supplier from taking new customers until its £3m debt position was resolved.
Tomato Energy Files Notice of Intention to Appoint Administrator
Industry filings confirm that Tomato Energy has filed a Notice of Intention to Appoint an Administrator, with documents published via Companies House.
Important Clarification: Filing a Notice of Intention does NOT mean the company has entered administration yet. This is a formal declaration that signals the company is considering administration and provides legal protection while exploring options.
This notice typically gives a company breathing space to:
- Explore rescue or restructuring options
- Prevent creditors from taking immediate legal action
- Assess whether administration is necessary
- Protect the business while decisions are made
Current Status: Tomato Energy is still trading, and customers should continue to receive supply as normal. However, the situation remains fluid and could change rapidly.
What This Means for Customers
Right now: Tomato Energy’s approximately 14,000 customers should see no interruption to their energy supply. The company continues to operate normally while the Notice of Intention is in place.
If administration proceeds: Ofgem would trigger its Supplier of Last Resort (SoLR) process, which would transfer all customers to an alternative supplier to ensure continuity of supply.
What happens under SoLR:
- Ofgem appoints a new supplier to take over all customers
- Energy supply continues without interruption
- Customer credit balances are typically protected
- Billing and account management transfers to the new supplier
Do NOT switch yet: Customers should wait for official communication from Ofgem before taking any action. Attempting to switch during a potential SoLR process can complicate billing and account transfers.
Guidance for Tomato Energy Customers
If you’re currently supplied by Tomato Energy, here’s what you should do:
- Take meter readings now and keep copies of recent bills and invoices for your records
- Document your credit balance — note any payments you’ve made or credit on your account
- Do not attempt to switch until you receive official communication from Ofgem
- Monitor your email and post for updates from Tomato Energy, Ofgem, or a new appointed supplier
- Keep paying your bills as normal unless officially advised otherwise
Stay Alert: The situation could develop quickly. If administration is confirmed, Ofgem typically moves within days to appoint a new supplier and communicate with affected customers.
Once the situation is resolved(either through restructuring or SoLR), you’ll have options to:
- Stay with any newly appointed supplier
- Switch to a different supplier without exit fees
- Compare the market for better rates and more financially stable suppliers
The Bigger Picture
Tomato Energy’s financial difficulties highlight the continued challenges facing smaller suppliers in the UK retail energy market.
Market Context: Since 2021, more than 40 energy suppliers have exited the market, often leaving businesses caught between financial loss and operational uncertainty.
The combination of Ofgem’s £1.5m redress order, proposals for additional financial penalties, and ongoing liquidity issues has placed Tomato Energy in an increasingly precarious position. The Notice of Intention to Appoint an Administrator suggests the company is exploring all available options.
Ofgem’s stricter enforcement and financial resilience checks are designed to prevent supplier failures — but Tomato Energy’s situation demonstrates that regulatory pressure, while protecting consumers, can also push struggling suppliers toward administration.
Tomato Energy FAQ
- Take and record current meter readings
- Keep copies of recent bills and payment records
- Note your current credit balance or any money owed
- Monitor email and post for official communications
- Do NOT switch suppliers yet — wait for Ofgem guidance
Final Thoughts
Tomato Energy’s Notice of Intention to Appoint an Administrator represents a critical juncture for the supplier. While not yet in administration, the filing signals serious financial distress following Ofgem’s enforcement actions and ongoing liquidity issues.
Key Takeaway: This situation reinforces the importance of supplier financial stability. When selecting an energy supplier, consider regulatory standing, financial health, and market reputation alongside price. Stability matters, especially in uncertain market conditions.
Customers should remain vigilant but not panic. If administration proceeds, Ofgem’s established processes will protect supply continuity and, in most cases, customer credit balances.
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