Tomato Energy Under Investigation: What It Means for Business Customers

Your guide to understanding energy supplier risks and what to do if your provider is under scrutiny.

🧾 Quick Summary

On 10 April 2025, Ofgem issued a Provisional Order against Tomato Energy Limited, a UK-based electricity supplier, due to serious concerns over their operational capabilities, financial health, and failure to report financial risks. This blog unpacks what’s happening, why it matters to energy buyers, and what actions you should consider if you're a Tomato Energy customer.

🕵️‍♂️ Why Is Ofgem Investigating Tomato Energy?

Ofgem is investigating whether Tomato Energy has breached three critical Standard Licence Conditions (SLCs):

• SLC 4A: Requires suppliers to have internal systems capable of serving customers and complying with regulations.
• SLC 4B.1: Requires suppliers to maintain enough capital and liquidity to meet their financial obligations.
• SLC 4B.8: Requires suppliers to notify Ofgem if they hit financial "trigger points" (e.g. cash shortfalls, contract risks, or worsening liquidity).



Since late 2024, industry stakeholders raised the alarm over Tomato Energy’s failure to pay over £3 million in liabilities, and the company did not report these financial issues to Ofgem as required.

🧨 The Key Issues Identified

• Cashflow problems: Tomato Energy admitted to cashflow challenges but failed to follow through with corrective actions.
• Lack of reporting: Despite clear rules, they didn’t notify Ofgem about critical financial risks.
• Increased consumer risk: Non-payment by Tomato could result in "mutualised costs" — where other suppliers (and ultimately consumers) cover the shortfall if the company collapses.

🚫 What Restrictions Has Ofgem Imposed?

Ofgem’s Provisional Order imposes tough restrictions on Tomato Energy:

• Sales ban: No new customer acquisition until compliance is proven.
• Ban on non-essential payments: Can’t make payments, loans, or asset transfers unrelated to essential operations.
• Independent audit: Must commission and submit a report on their liquidity and capital quality.
• Compliance deadlines:
• Independent audit report due by 1 May 2025
• Liquidity restoration deadline of 8 May 2025



Unless these conditions are met, Tomato risks losing its supply licence.

🤔 Got Questions About Your Supplier or Contract?

Energy compliance issues can be confusing — whether you're with Tomato Energy or simply want peace of mind about your current deal, we're here to help.

✅ Get clear, jargon-free advice.
✅ Know your rights and next steps.
✅ Check what options are open to your business.

🧠 What Is 'Mutualisation' — and Why Should You Care?

Mutualisation is when the cost of a failed supplier’s unpaid industry debts is passed onto remaining suppliers, who often pass this cost onto customers. In essence, we all pay when one supplier mismanages finances.

🏢 What Should Business Customers Do Now?

If you're a business currently with Tomato Energy, or considering a new supplier, here’s our advice:

• Check your current supplier status — Are you with Tomato Energy or a similarly small supplier? Contact us if unsure.
• Review contract flexibility — Understand if you're locked in or eligible to switch.
• Act early — If there’s any hint of instability, it’s better to move before formal license revocation or collapse.
• Get a fresh quote — Even if you're in contract, we can prepare quotes so you're ready to act.

📉 Risk Management Tips for Choosing a Supplier

When reviewing quotes, don’t just look at unit rates. Ask:

• How long has the supplier been trading?
• Are they backed by a larger parent company?
• What’s their credit rating or industry feedback?
• Are they financially compliant (SLC 4B)?



Our broker service already screens this for you — we only work with suppliers who meet regulatory and financial standards.

👉 Avoid Supplier Risk — Get a Quote with Confidence

Don’t risk being caught out by a financially unstable supplier. We compare deals across 28+ vetted suppliers, ensuring peace of mind for your next contract.

📌 Final Thoughts

Tomato Energy’s investigation is a reminder of how critical financial oversight is in the energy sector. As a business owner, staying informed and acting early can save you from disruption, higher prices, or being left without support.



If you're worried about your supplier — we’re here to help.