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


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:
- Get a quote for a fixed contract (this is where we come in)
- Review the rates and terms
- We handle all the admin with British Gas and the new supplier
- 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
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:
- Tomato Energy Faces £1.5m Fine: Early Warning Signs — The first regulatory enforcement action that signalled trouble ahead
- Tomato Energy's £1.5m Penalty: What It Means — Deep dive into the redress order and compliance failures
- Tomato Energy Administration: The Notice of Intent — When the company filed for administration and what that meant for customers
- Tomato Energy Ceases Trading: Why Capital Matters More Than Innovation — The full analysis of why Tomato Energy failed and the lessons for the market
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 NowExplore More Energy Insights
Stay informed with the latest market updates, supplier news, and industry changes affecting your business
Read our latest energy market insights and expert analysis
Your weekly energy market summary and price movements
Comprehensive monthly energy market trends and forecasts
Current deemed rates and how to avoid expensive bills
Latest news from UK energy suppliers and market changes
Important regulatory and industry updates for businesses
Found This Helpful?
Share this insight with your business network



