Tomato Energy Faces Administration After £1.5m Fine

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Ofgem Enforcement Notice of Intent Filed What This Means Guidance for Businesses The Bigger Picture FAQ

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

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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

❓ Has Tomato Energy gone into administration?

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Not yet. Tomato Energy has filed a Notice of Intention to Appoint an Administrator, which is a formal step indicating they're considering administration. However, the company has not entered administration at this time and continues to trade. The situation could change, so customers should monitor for official updates from Ofgem.

❓ Will my business lose power?

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No. Your energy supply will not be interrupted. Even if Tomato Energy enters administration, Ofgem's Supplier of Last Resort (SoLR) process guarantees continuity of supply. A new supplier would be appointed to take over all customers immediately.

❓ Should I switch suppliers now?

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No, not yet. Wait for official communication from Ofgem before taking action. If administration occurs and a SoLR process is triggered, switching beforehand can complicate your account transfer and billing. Once the situation is resolved, you'll be free to switch without exit fees.

❓ What happens to my credit balance?

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If administration occurs and SoLR is triggered, credit balances are typically protected and transferred to the new appointed supplier. Keep copies of your most recent statements and meter readings to ensure accurate reconciliation. Document your current credit balance now as a precaution.

❓ Should I continue paying my bills?

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Yes, continue paying your bills as normal unless you receive official communication advising otherwise. Tomato Energy is still trading and providing supply. Non-payment could result in late payment charges or supply issues.

❓ Will I get compensation from Ofgem's redress order?

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If you were due compensation payments (such as the £10–£50 payments from Ofgem's redress ruling), these should still be processed. However, if administration proceeds, there may be delays. Keep documentation of any compensation you're owed and monitor communications from Ofgem or any appointed administrators.

❓ How will I know if Tomato Energy enters administration?

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Ofgem will communicate directly with all affected customers via email and post. The announcement will also be made public through Ofgem's website and industry news channels. If administration occurs, you'll receive clear instructions about your new supplier and next steps.

❓ What should I do right now?

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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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Tomato Energy Faces Administration Following £1.5m Ofgem Penalty