Tomato Energy Ordered to Pay £1.5m as Ofgem Warns of Licence Risk
Tomato Energy Under Pressure: Customer Redress, Debt Warnings, and Next Steps
The troubles continue for Basingstoke-based supplier Tomato Energy, following on from Ofgem’s provisional order earlier this year.
In September 2025, the energy regulator confirmed the supplier has been
forced to pay £1.5m after being found in breach of its licence conditions — and warned that Tomato could now even lose its licence if it fails to meet financial requirements.
This follows the April 2025 ban on Tomato Energy taking new customers due to debts exceeding £3m. Around 14,000 customers are now left questioning the stability of their supplier.
Ofgem’s £1.5m Enforcement Action
Ofgem’s latest report revealed serious concerns with Tomato Energy’s operations, including:
- Incorrect charges to customers.
- Failure to supply requested information in a timely manner.
- Inadequate customer service procedures.
The regulator concluded these failings exposed customers to an “increased risk of harm.”
As a result:
- Tomato Energy has paid £1.5m into the Voluntary Redress Fund, which supports vulnerable energy consumers.
- Customers affected will also receive redress payments of between £10 and £50 within 30 days.
Financial Concerns & Licence Risk
Alongside these service failings, Tomato Energy’s financial health remains under heavy scrutiny.
- Ofgem is investigating debts of more than £3m owed by the supplier.
- In April 2025, Tomato was banned from taking on any new customers until it could prove its finances were in order.
- The regulator has now given Tomato Energy three months to comply with financial stability requirements — or face losing its licence to supply energy.
Tomato Energy itself has acknowledged “cash flow challenges” and says it is working with Ofgem to address concerns.
What This Means for Businesses
For the 14,000 customers currently with Tomato Energy, these developments create serious uncertainty.
Businesses may face:
- Service disruption if Tomato struggles with customer support.
- Billing issues or incorrect charges.
- Risk of supplier exit, which could force a transfer to another supplier at short notice.
⚠️ History shows the risk is real — over 40 small and medium suppliers have exited the market since the 1990s, including 28 in 2021 alone during the wholesale price crisis.
👉 Don’t wait for problems to escalate.
If your supplier is under investigation, it’s worth reviewing your options now.
Advice for Tomato Energy Customers
If you’re a Tomato Energy customer — or with another smaller supplier under review — here are some practical steps to take:
- Check your bills carefully and keep records of all communication.
- Look out for your redress payment (due within 30 days).
- Consider your renewal options early — especially if your contract ends soon.
- Switch proactively if Ofgem revokes Tomato’s licence, rather than being left to market changes.
Tomato Energy FAQ
❓ Can I leave Tomato Energy now?
Not without penalty.
If you’re in a fixed-term contract, you cannot just exit early unless you pay the remainder of your contract value. Ofgem’s investigations do not give businesses a free pass to walk away from binding contracts.
If you're unsure, you can always contact Tomato Energy to ask what your cost would be to leave the existing contract early.
❓ What happens if Tomato Energy goes bust?
If Tomato Energy fails, Ofgem will appoint a Supplier of Last Resort (SoLR) to take over your supply.
- In most cases, the new supplier will try to honour your existing contract terms and rates.
- However, Tomato Energy has often provided zero standing charge contracts. This may not be feasble for the new supplier, particularly with the increased of the TNUoS costs coming in.
- If the SoLR cannot continue on your existing rates, you will be informed and typically free to leave without penalty, allowing you to secure a deal with another supplier.
❓ Will my business lose supply if Tomato Energy collapses?
No. Ofgem’s SoLR process ensures there is no interruption to your gas or electricity supply. The risk is financial and contractual, not physical.
❓ What about the £10–£50 compensation payments?
Tomato Energy has committed to making these redress payments within 30 days. Ofgem is monitoring, but keep records of your bills and check your account to ensure payment is made.
❓ What should businesses do now?
- Stay in contract unless there’s a financial case to exit.
- Monitor the situation closely and keep copies of all bills and correspondence.
- Be prepared: if a SoLR takes over and can’t honour your existing terms, that’s the point when you’ll likely be free to leave and secure a new, fully fixed deal.
- If your contract is due within the next 6 months, request a quote to see what is available for your next renewals from our panel of 28+ suppliers.
Final Thoughts
Tomato Energy’s situation is a reminder of the risks smaller suppliers can pose when financial and service standards slip. With Ofgem continuing to tighten regulation, businesses should prioritise stability and reliability in their energy supplier.
Whether you’re directly affected by Tomato Energy or just reviewing your next renewal, now is the time to get clarity.
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