An energy company serving approximately 12,000 households is said to be nearing collapse. Tomato Energy has taken steps to appoint an administrator, as reported by The Sun. This filing indicates the company’s intention to enter administration, providing a temporary legal shield against creditor actions for ten days. Tomato Energy, facing debts of £3 million, was sanctioned by energy regulator Ofgem in April, preventing it from acquiring new customers.
Recently, Ofgem warned Tomato Energy of a potential £1.5 million penalty for failing to meet financial obligations. If an administrator assumes control, efforts will be made to address the company’s outstanding debts. In cases where a company cannot be rescued, it may face closure, with affected customers typically transferred to alternative suppliers by Ofgem without disruption to their energy service.
This development coincides with another increase in energy bills, with the Ofgem price cap climbing from £1,720 to £1,755 for a standard dual fuel household paying via direct debit. The price cap remains effective until December 31 and applies to consumers on standard variable rate tariffs. However, actual energy costs are determined by consumption levels of gas and electricity, with Ofgem capping charges for energy units and standing fees.
The price cap serves as an estimate of annual energy costs for an average household consuming 2,700 kWh of electricity and 11,500 kWh of gas. It’s crucial to note that bill amounts are still influenced by individual usage patterns.