Thomas McGlynn • 14 November 2025

Ofgem Appoints British Gas for Tomato Energy Customers (SoLR) — What It Means for Your Business

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Ofgem appointed British Gas for Tomato Energy customers. A man reads a newspaper, teal background.
Tomato Energy Customers Moved to British Gas | Escape High Deemed Rates

What Happened: Tomato Energy → British Gas

On November 10, 2025, all Tomato Energy business customers were transferred to British Gas following Tomato Energy's administration and closure.

The transfer is complete: Your energy supply continued without interruption. Your account details, credit balances, and billing information were transferred automatically to British Gas.

However, there's an important detail many businesses don't realise: you're now on British Gas "deemed rates" — which are significantly higher than fixed contract rates.

Key point: You are NOT locked in to these rates. You're free to switch to a better deal immediately. Most businesses don't know this and continue overpaying unnecessarily.

What Are Deemed Rates? And Why Are They So Expensive?

Deemed rates are temporary, uncontracted prices that suppliers charge when customers aren't on a fixed agreement. They're designed to be a short-term solution, not a long-term contract.

Here's the problem: Deemed rates are intentionally set higher than market rates. Suppliers use them to encourage customers to negotiate formal contracts. If you stay on deemed rates indefinitely, you're essentially paying a "penalty" for not having a fixed deal.

Why British Gas uses deemed rates: When customers arrive via Ofgem's Supplier of Last Resort (SoLR) process — like Tomato Energy customers — they don't have existing contracts. British Gas needs a way to supply them immediately whilst arrangements are finalised. Deemed rates serve that purpose. But they're meant to be temporary.

Unfortunately, many businesses stay on deemed rates for months or even years without realising they can switch.

How Much Are You Actually Paying?

British Gas deemed rates effective January 1, 2026 are set out below. The exact cost depends on your meter type and consumption profile.

For non-half-hourly sites:

Profile Class Standing Charge Unit Rate
01-04 Profiles (small business) 203.46p/day 40.60p/kWh
05-08 Profiles (medium business) 390.60p/day 39.51p/kWh
UMS (unmetered supply) 0.00p/day 38.42p/kWh

For gas:

Meter Type Standing Charge Unit Rate
Small non-daily meter 180.60p/day 12.69p/kWh
Large non-daily meter 718.55p/day 7.87p/kWh
Daily meter 45,278.26p/day 7.09p/kWh

The Real Cost: These deemed rates are estimated to be 50-70% higher than competitive fixed contract rates available on the open market. For a small-to-medium business, this could mean hundreds or even thousands of pounds in unnecessary costs per year.

You're Free to Switch — Here's How

The most important thing to understand: you are not locked into British Gas deemed rates. You can switch to a different supplier at any time with zero exit fees.

Why most businesses don't switch:

  • They don't realise the rates are expensive
  • They assume they're locked in (they're not)
  • They don't know where to start
  • They lack capacity internally to manage a switch

The switching process is simple:

  1. Get a quote for a fixed contract (this is where we come in)
  2. Review the rates and terms
  3. We handle all the admin with British Gas and the new supplier
  4. You're switched to better rates, usually within 2-4 weeks

What Are Your Real Options?

Option 1: Stay on British Gas deemed rates

✗ Paying 50-70% more than necessary
✗ No fixed contract protection
✗ Rates can change with 30 days' notice
✗ Wasting money every month

Option 2: Switch to a fixed contract with a different supplier

✓ Rates locked in for 1-3 years
✓ Significant cost savings (typically 30-50% less than deemed rates)
✓ Budget certainty and protection
✓ Better customer service and support
✓ Exit fees: typically none if switching from deemed rates

Example savings: A small business paying £200/month on deemed rates could reduce that to £100-£140/month on a fixed contract. Over a year, that's £720-£1,200 in savings. For larger businesses, savings can be significantly more.

Ready to Escape High Deemed Rates?

Don't let British Gas deemed rates drain your budget. We've helped hundreds of businesses in your situation — transferred from failed suppliers, stuck on expensive temporary rates.

Here's what we do:

  • Compare rates from 28+ UK energy suppliers
  • Secure fully fixed contracts with no hidden costs
  • Handle all the switching administration
  • Become your ongoing energy partner for future renewals

Get a free quote today and see how much you could save:

Why choose Smart Energy Company? We've been helping UK businesses since 2014. We focus exclusively on fully fixed contracts (no partial hedging). We maintain 100% 5-star Trustpilot reviews. We offer same-day bespoke quotes and become your ongoing account managers — not just one-time transaction handlers.

Frequently Asked Questions

Why has British Gas started supplying my energy?
Tomato Energy ceased trading in November 2025. Ofgem's Supplier of Last Resort (SoLR) process appointed British Gas to take over all customer accounts and continue supplying energy without interruption. Your supply is protected and continues seamlessly.
Will I lose my gas or electricity supply?
No. Ofgem's SoLR protection guarantees that your energy supply will continue without interruption throughout the transfer process. You won't experience any break in supply or loss of power.
When did I join British Gas?
You became a British Gas customer on 9 November 2025 when Ofgem appointed them to supply your energy. Your account setup typically takes between 7 and 21 days. British Gas will contact you when your new account is fully ready to use.
Do I need to do anything right now?
When your British Gas account is ready, you may need to: (1) Provide a meter reading to activate your account, and (2) Create a password for your new online account. British Gas will contact you with specific instructions. Don't cancel any Direct Debits — they'll be transferred automatically.
Will my account number change?
Yes. Tomato Energy will close your old account, and British Gas will issue you with new account reference numbers. British Gas will provide you with full details of your new account when it's set up. Keep your Tomato Energy reference for closing-out records.
What happened to my Tomato Energy credit balance?
Any credit on your Tomato Energy account after your final bill should be transferred to your British Gas account. You'll see this credit shown on your first British Gas bill. If you notice any discrepancies, contact British Gas immediately with your final Tomato Energy statement as proof.
Will my energy prices change?
Yes. You'll be on British Gas "deemed rates" initially — temporary, uncontracted pricing. The key thing? You're completely free to switch to a better deal at any time with zero exit fees. This is the opportunity to secure a competitive fixed contract. Deemed rates are typically 50-70% higher than market rates, so switching could save your business significant money.
What should I do with my Direct Debit?
Don't cancel your Direct Debit. British Gas will transfer it automatically to your new account. Your bank statement will show 'British Gas Business' instead of Tomato Energy. If you don't currently pay by Direct Debit but would like to, you'll be able to set one up through your new online account once it's ready.
I was already switching to another supplier — what happens now?
Your transfer to British Gas should proceed as normal, and you'll hear from your new supplier with next steps. You can start your switch to another supplier again 5 days after your British Gas account is fully set up. Some circumstances (existing contract or outstanding balance) may delay your switch — contact your new supplier to confirm.
How can I escape expensive deemed rates?
Get a competitive quote from an independent energy broker like Smart Energy Company. We compare rates from 28+ UK suppliers and secure fully fixed contracts with no hidden costs. You'll typically save 30-50% compared to deemed rates. Fill out our form above for a free, no-obligation quote — it takes 5 minutes and could save your business thousands per year.

Related Reading: The Full Tomato Energy Story

Want to understand the full context of what happened to Tomato Energy? Here's how we've been covering this developing story:

These posts provide important context about supplier stability and why choosing the right energy partner matters for your business.

Don't Accept Deemed Rates as Your New Normal

Being transferred to British Gas via SoLR was the right outcome — your supply was protected and continued without interruption. But staying on deemed rates indefinitely is an expensive mistake.

You've already experienced one supplier failure. Don't compound that by overpaying on temporary rates when competitive, fixed contracts are available.

Take action today: Fill out the form above to get a free, no-obligation quote. Find out exactly how much you could save and what a proper fixed contract looks like.

👉 Get Your Free Quote Now