Why the collapse of Tomato Energy matters for your business – and how E for Energy keeps you safe

Introduction

Recently, the energy supplier Tomato Energy collapsed, leaving around 8,400 business customers (and 15,300 households) facing uncertainty. 
If your business was with Tomato Energy – or you rely on a smaller supplier with limited resilience – this is a wake-up call.
At E for Energy, we believe that business energy procurement isn’t just about price: it’s about security, transparency and long-term partnership.

What happened with Tomato Energy?

• Tomato Energy built up debts of around £3 million and was fined £1.5 million by the regulator for failing to maintain adequate liquidity. 
• They were banned from taking new customers in April, and eventually filed for administration after no rescue deal materialised. 
• The collapse impacts both household and business customers, and although supply is protected by the regulator’s safety-net, businesses now face switching to a new supplier under potentially less favourable terms. 
• For businesses, any disruption or forced switch can mean unexpected costs, administrative burden, and risk to operations.

Why this matters for business energy customers

When a supplier goes bust, businesses can face:

• Price volatility: If you are moved to a new supplier or deemed contract you didn’t negotiate, costs may increase.
• Operational risk: Any administrative disruption (data transfers, contract renegotiation) takes time and focus away from your core business.
• Hidden exposure: Smaller suppliers may look attractive on price-only terms, but if they lack sufficient financial resilience you could be vulnerable to market shocks.
• Lost focus on service: If the supplier is under financial pressure, their ability to provide proactive account management, reliable billing, and good customer support may be compromised.

For business energy procurement, therefore, the supplier strength and contract transparency matter just as much as headline price.

How E for Energy protects your business

At E for Energy we take a business-first approach designed to give you confidence and control. Here’s how:

1. Robust supplier selection

We partner only with suppliers who meet strong financial and regulatory criteria. We continually monitor their financial strength, regulatory compliance and service performance. That means you’re working with a supplier who’s built to last, not one who might collapse under market pressure.

2. Transparent contract terms

We ensure your business energy contracts are clear, understandable and aligned with your risk profile. No hidden clauses, no last-minute surprises. You’ll know what you’re committing to, and what happens should market or provider circumstances change.

3. Proactive account management

We provide a dedicated contact point to support your business, helping with usage data, forecasting, supplier engagement and future energy strategy. That means if conditions change, we’re with you — not just at renewal.

4. Cost-control plus security

Yes, we provide competitive pricing—but our focus is on the total cost of ownership, including the risk premium associated with supplier failure. Choosing the cheapest supplier without looking at stability can cost much more in the long run. The collapse of Tomato Energy is a live example.

5. Business-centric focus

We understand that businesses need energy procurement to be reliable, simple and aligned with growth. Whether you’re a SME or larger enterprise, we tailor our service accordingly.

What you should be asking your energy partner today

If you’re reviewing your business energy supplier or contract, here are key questions to ask:

• Is my supplier financially resilient? What is their credit rating / liquidity buffer?
• What happens in the event the supplier fails (for example like Tomato Energy)?
• Am I on a “deemed” contract or negotiated fixed-term? What are the exit penalties or termination rights?
• Who manages my account? Do I have a dedicated contact?
• How transparent is the pricing structure and how often will it be reviewed?
• What value-added services (data, forecasting, efficiency advice) are included?

If you can’t get clear answers to these, you may be exposing your business to unnecessary risk.

Why now is the time to act

The energy market remains volatile. The failure of Tomato Energy underscores that even smaller players in the market can collapse with short notice. For business customers that means risk — which can translate into cost, disruption or loss of control.
Switching to a trusted partner like E for Energy now means you can:

• Secure your supply under a stable framework
• Lock in cost predictability with clarity on risk
• Free up internal resources from chasing suppliers to focus on running your business

We’re ready to help you review your current supplier, assess your risk exposure, and design a business energy strategy built for resilience — not just price.

Contact Us

If you are a business customer (whether SME, multiple-site, or enterprise) and you want to ensure your energy procurement is secure, transparent and aligned with your growth plans, get in touch with E for Energy today.
Call : 0115 9029 431 – Mail to Admin@eforenergy.co.uk 
Let’s schedule a complementary review of your current supplier and contract to identify any risks, cost-levers and service improvements.