Small Energy Firm Tomato BLOCKED from Taking New Customers After £3m Debt Fiasco

By HOAR Team 14 April, 2025 5 mins read 88 Views

God. Another one bites the dust.

I was literally just telling my partner last week about how these smaller energy companies keep dropping like flies. Remember 2021? That was a bloodbath. And now Tomato Energy (yes, that's really their name) has gotten themselves into hot water with the regulator.

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What the hell happened?

Ofgem has slapped a "sales ban" on Tomato Energy, which means they can't take on any new customers. The company has about 12,000 customers right now who are probably wondering if their supplier is about to vanish into thin air.

The issue? They've racked up £3 million in unpaid debts. THREE MILLION. That's not exactly loose change you find between sofa cushions.

I checked their website this morning and there's this awkward little message saying "We are temporarily not accepting new registrations or providing quotes for new customers. Please check back for later updates." Translation: We're in deep trouble.

Cash Flow "Challenges" (AKA We're Broke)

Tomato admitted to having "cashflow challenges" which is corporate-speak for "we don't have enough money to pay our bills." I've had cashflow challenges too - like that time in 2018 when I spent $4K on emergency plumbing and had to eat ramen for a month. But I didn't have thousands of customers depending on me.

The regulator isn't just stopping them from taking new customers. They're also banned from any marketing activities and from offering loans or credit to existing customers. Basically, they're in the naughty corner until they can prove they've got their act together.

Should existing customers panic?

Not yet.

Tomato insists that existing customers won't be affected. Their statement to The Sun was full of corporate optimism: "We remain confident in our products and financial resilience and will be working closely with Ofgem to resolve any concerns."

My colleague texted me about this yesterday. His response: "Sounds like what my ex said right before breaking up with me." Harsh but... not wrong?

The energy market is a total mess

This feels like déjà vu. Back when energy prices went through teh roof, we saw about 30 companies collapse in less than a year. Remember Bulb? That was a disaster that affected over a million households.

The thing that drives me crazy about this situation is that if Tomato fails to pay its debts, those costs could end up being spread across everyone else's bills. That's right - WE might end up paying for their mistakes. Because that seems fair.

I interviewed an energy analyst last summer who told me the smaller companies often offer better deals, but they're built on financial foundations about as stable as a chocolate teapot in July. (He actually used a much more colorful metaphor involving bodily functions, but my editor would kill me if I repeated it here.)

Ofgem finally growing some teeth?

After watching dozens of energy companies implode, Ofgem has recently introduced new rules requiring firms to maintain financial buffers. Too little, too late? Possibly.

Look, I'm all for competition in the energy market. My bills are painful enough without returning to the days when the Big Six had us all over a barrel. But there's gotta be better vetting of these companies.

I tried to contact Tomato Energy directly for comment. Left three messages yesterday. Still waiting for a callback... (Not holding my breath).

For now, if you're a Tomato customer, sit tight. If they do go under, Ofgem will appoint a new supplier for you - probably one of the bigger firms like British Gas, who recently took on Rebel Energy's 80,000 customers when they collapsed.

And if you're shopping around for a new energy deal? Maybe stick with companies that don't name themselves after salad ingredients.

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