Major UK energy provider used by thousands of households suddenly collapses

Gas and electricity firm Tomato Energy, which serves thousands of customers in the UK, has collapsed, Ofgem has revealed. The industry's watchdog has stepped in to protect supply for the provider's 15,300 households and 8,400 business customers.

Administrators were called in at the end of October after Tomato Energy racked up debts of more than £3million. In April, it was banned from taking on new customers. In a post on its website, Ofgem said that under 'The Supplier of Last Resort (SoLR)' safety net, "customers' energy supply will continue and funds that domestic customers have paid into their accounts, including existing credit balances, will be protected. Domestic customers will also be protected by the energy price cap when being switched to a new supplier. Customers of Tomato Energy will be contacted by their new supplier, which will be allocated by Ofgem in the coming days."

In the meantime, the energy is advising affected customers to do two things: wait until a new supplier has been appointed and you have been contacted by them in the following weeks, before looking to switch to another energy supplier; and take a meter reading ready for when your new supplier contacts you.

Rohan Churm, Director for Financial Resilience and Control at Ofgem, said: "I want to reassure Tomato Energy customers that they do not need to worry.

"They will not see any disruption to their energy supply, and any credit domestic customers have on their accounts remains protected under Ofgem's rules.

"We are working quickly to appoint a new supplier for all existing customers, and they should not switch in the meantime. Once appointed, a new supplier will be in touch with further information.

"We have worked hard to improve the financial resilience of suppliers in recent years, implementing a series of rules to make sure they can weather unexpected shocks.

"But like any competitive market, some companies will still fail from time to time, and our priority is making sure consumers are protected if that happens and that any associated costs are minimised."

Tomato Energy wrote in a post on its website: "Ofgem, the energy regulator, is appointing a new supplier for our customers.

"In relation to outstanding payments to Tomato Energy, click here for information on our final billing processes.

"Customers do not need to worry - your supplies are secure, and funds that domestic customers have paid into your accounts will be protected if you are in credit.

"Ofgem's advice is not to switch, but to wait until they appoint a new supplier for you. This will help make sure that the process of handing customers over to a new supplier, and honouring domestic customers' credit balances, is as hassle free as possible.

"Support and advice are available on the Ofgem website for both domestic customers and non-domestic customers."