Regulator threatens to stop debt-ridden electricity firm operating
Embattled household electricity retailer Tomato Energy has been given three months to resolve its financial problems or face having its licence revoked.
Regulator Ofgem has issued a “provisional order” on TE saying if the company fails to meet required liquidity thresholds in the next three months, the authority “may at any time revoke [TE]’s supply licence.”
The latest order from Ofgem comes after it issued an order in April on TE, which has bases in Basingstoke and Wolverhampton, demanding the firm pause all sales activity while external investigators examined its books to ensure it was financially fit to operate.
The regulator said in its April order it “was informed by multiple market participants that they were considering commencing legal proceedings against Tomato Energy for the recovery of unpaid liabilities totalling over £3m.”
Ofgem issued another order in July telling TE to get its books and debt liabilities in order by end of August.
Earlier this month TE made its entire communications and marketing team redundant.
Ofgem threatens to revoke licence
A statement on Ogem’s website says: “On 10 September 2025 the Authority issued Tomato Energy Limited (“Tomato Energy”) with a Notice of failure to comply with a confirmed Provisional Order, which was issued in accordance with section 25 of the Electricity Act 1989.
“The notice provided Tomato Energy with written notice, pursuant to Schedule 2(1)(c)(i) of the Electricity Supply Licence, of Tomato Energy’s failure to comply with the confirmed Provisional Order dated 9 July 2025, namely a failure to obtain and maintain Liquidity of a sufficient amount and Quality so that it is able to meet its reasonably anticipated financial liabilities as they fall due on an ongoing basis, by 31 August 2025.
“The notice further explains that if this failure is not rectified to the satisfaction of the Authority within three months of Tomato Energy receiving the notice, the Authority may at any time revoke Tomato Energy’s Electricity Supply Licence subject to giving no less than 30 days’ notice.”
