eforenergy.co.uk | Tomato Energy Collapse: What It Means for UK Businesses

Tomato Energy Collapse: What It Means for UK Businesses

On 10 November 2025, Ofgem confirmed that British Gas has been appointed to take over customers from Tomato Energy after the supplier ceased trading. 👉 Source: Ofgem Press Release

While the transition is managed under Ofgem’s Supplier of Last Resort process, this announcement once again highlights the importance of supplier resilience, procurement strategy, and risk management for UK businesses.

At E for Energy, we support companies through every stage of the energy procurement journey — helping them avoid risk, review contracts, and stay ahead of market changes.

What Happened?

According to Ofgem, Tomato Energy supplied around 15,000 domestic and 8,000 non-domestic customers. Following its collapse, British Gas will now supply those customers automatically.

Key points from the Ofgem announcement:
– Domestic credit balances are protected.
– No exit fees will apply if customers wish to switch to another supplier.
– The energy price cap now applies to domestic customers under British Gas.
– Business customers will need to review their new supply arrangements carefully.

Why This Matters to Business Energy Buyers

1️⃣ Supplier failure risk is real
In today’s volatile market, even smaller suppliers can face financial pressure. A collapse can cause billing delays, data issues, and uncertainty around your contracts. Businesses must ensure their suppliers are stable, transparent, and well-resourced.

2️⃣ Transition periods can cause disruption
When a supplier exits the market, your business could see temporary changes in pricing or account management. Having an energy partner like E for Energy ensures your contracts and consumption data remain accurate and protected throughout the process.

3️⃣ A time to review your procurement strategy
This is the perfect opportunity to review your current energy deal. Are you on the best tariff? Is your supplier giving you value, stability and service? Our experts help businesses across the UK benchmark contracts, explore greener options and negotiate competitive rates.

4️⃣ Regulatory protection is limited for businesses
Unlike domestic customers, commercial supply agreements are bespoke. They’re not always covered by the same protections. That’s why businesses should take a proactive approach to contract management and supplier health checks.

What Businesses Should Do Now

✅ Check your supplier’s financial health – ask about their backing, trading status, and contingency planning.
✅ Review your contract terms – especially exit clauses and renewal dates.
✅ Benchmark your prices – contact E for Energy for a free contract review and competitive comparison.
✅ Consider greener, more stable options – renewable energy procurement can often mean stronger long-term value.

How E for Energy Can Help

As a Nottingham-based business energy consultancy, we work exclusively with commercial clients across the UK to:
– Audit existing supply contracts
– Identify and mitigate supplier risk
– Manage tender processes and supplier switching
– Negotiate improved pricing and contract terms
– Advise on renewable and green energy options

Our team combines market insight with personal service — helping businesses protect their budgets, plan ahead and stay compliant.

Need Support After the Tomato Energy Announcement?

If your business has been affected — or if you simply want to ensure your energy strategy is future-proof — get in touch with our team today.

E for Energy – Business Energy Experts
🌐 www.eforenergy.co.uk
📞 0115 902 9431
✉️ admin@eforenergy.co.uk

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