Energy supplier with thousands of customers goes bust

They entered financial difficulties.

Energy supplier Tomato Energy has finally gone bust after being on the brink of collapse only a few weeks ago, as reported by Money Saving Expert.

Tomato Energy supplied electricity to 12,000 homes in the UK, offering a range of flexible tariffs and even a scheme which sees solar panels installed on houses at no up-front cost.

However, the company found themselves in financial difficulties after racking up £3million in debts.

Back in April, this debt caused the energy regulator Ofgem to ban the company from taking on new customers until it was in a better position.

However, just a couple of weeks ago, Ofgem threatened Tomato Energy with a £1.5million fine.

In the wake of that news, the energy supplier filed for an administrator to take the reins.

Now, it has been confirmed the company has gone bust and stopped trading.

Despite many finding themselves Ofgem reassured customers that even if a supplier goes bust, people won't find themselves cut off.

Customers get automatically switched to a new supplier which they are never locked into and can change whenever.

Tomato Energy was founded in 2015 and is based in Basingstoke, Hampshire.

In September, Ofgem gave the company a three month warning, preventing it from taking on new customers.

In a statement, Ofgem said: "We will take robust action to protect consumers if we see evidence that energy companies may be failing to comply with our rules."

After this, Tomato Energy released their own statement which said: "The Ofgem order is a Provisional Order that we are fully aware of and have over the last few months actively been working with and in conversations with Ofgem to alleviate their concerns.

"We aim to continue to work with Ofgem to satisfy their concerns and address all outstanding issues, as we remain fully committed to support our customers and continue our business. "