Tomato Energy has gone into administration. The company can’t continue trading as normal, and its future as a licensed energy supplier is effectively over. For residential and commercial customers, that means change is coming. The good news is that Ofgem has systems in place to make sure no one loses power.
Your energy supply will continue while the regulator steps in to manage the situation. That said, it’s still important to understand what’s happened, what this means for you, and what steps to take next.
What Has Happened?
Over the past few months, Ofgem has been investigating the company over concerns about its liquidity (cash reserves) and its ability to meet licence conditions. In April 2025, Ofgem issued a Provisional Order — essentially a formal warning — saying Tomato Energy wasn’t maintaining enough funds or meeting its obligations under the rules energy suppliers must follow. At the same time, Ofgem stopped the company from taking on new customers or spending money outside of what was essential to stay afloat.
What Led to This
Despite those early warnings, Tomato Energy didn’t manage to turn things around. The company reportedly built up over £3 million in unpaid debts, and by September, Ofgem confirmed it still hadn’t fixed the problems. A Notice of Failure to Comply followed — and now, administration.
On top of this, Tomato Energy was fined £1.5 million earlier this year for breaking several licence conditions, including issues with billing and customer service. Industry data also showed ongoing problems with metering and energy settlement, which only added to the regulator’s concerns.
What This Means for Residential Customers
If you’re currently with Tomato Energy, don’t panic — your energy supply won’t suddenly stop. When a supplier goes under, Ofgem appoints a “Supplier of Last Resort” (SoLR) to take over your account and make sure everything continues smoothly. Here’s what to expect:
Once the transfer is complete, you’ll have the freedom to stay with the new supplier or switch elsewhere. It’s worth comparing quotes once things settle to make sure you’re on the most competitive deal available.
For Commercial Customers and Partners
If you’re a business or supplier that worked with Tomato Energy, administration changes things immediately. Any outstanding invoices or payments owed will now fall under the administrator’s control. Recovery is possible, but it may take time — and not all creditors will get the full amount back.
It’s also worth reviewing any contracts or service agreements you had. These are likely to end or be renegotiated as part of the administration process. This situation is another reminder of how important it is to work with suppliers that have strong financial foundations — especially in a market that’s still adjusting to price volatility and tighter regulation.
What You Should Do Now
Here are a few practical steps for both households and businesses:
How Reduce My Costs Can Help
If you’re affected by Tomato Energy’s administration — whether as a customer, a supplier, or a business with exposure — our team can help you make sense of your options. We can review your energy contracts, help you plan your next steps, and guide you through switching to a more stable supplier if that’s the right move.
💬 If you’re unsure what to do next, get in touch.
Book a quick consultation with one of our energy experts — we’ll walk you through what’s happening, what to expect next, and how to protect your business from similar risks in future.
