Collapse of Tomato Energy: What It Means for Consumers and the Energy Market

Published: 7 November 2025 | By Energy Solicitors Limited

Yet another small energy supplier has exited the UK market this week. Tomato Energy, which served approximately 15,000 households and 8,000 businesses, has ceased trading, prompting regulatory intervention from Ofgem under its Supplier of Last Resort (SoLR) scheme.

What Happened?

Tomato Energy, previously known as Logicor Energy Ltd, is the latest casualty in a sector still grappling with the aftershocks of the energy crisis. 

Despite recent regulatory reforms aimed at strengthening financial resilience, smaller suppliers continue to face significant challenges. Ofgem’s updated rules now require suppliers to hold sufficient capital and ring-fence customer credit balances, measures designed to prevent exactly this kind of collapse.

Ofgem’s Response

In line with its SoLR protocol, Ofgem has assured customers that:

• Energy supply will continue uninterrupted
• Domestic credit balances are protected
• There is no immediate need to switch suppliers

A new supplier will be appointed shortly, and affected customers will be contacted directly with details of their new provider and tariff arrangements. Domestic users will remain protected by the energy price cap during the transition.

Rohan Churm, Ofgem’s Director for Financial Resilience and Controls, stated:

“I want to reassure Tomato Energy customers that they do not need to worry. They will not see any disruption to their energy supply, and any credit domestic customers have on their accounts remains protected under Ofgem’s rules.”

Legal and Regulatory Implications

For energy sector stakeholders, this event underscores the importance of robust financial governance and compliance with Ofgem’s evolving regulatory framework. The collapse also raises questions about the long-term viability of smaller suppliers in a market increasingly dominated by larger, well-capitalised firms.

From a legal perspective, Energy Solicitors advises energy suppliers should take note of:

• The importance of capital adequacy and credit ring-fencing
• The potential liabilities and reputational risks associated with supplier failure
• The need for proactive compliance strategies to meet Ofgem’s tightening standards

What Should Customers Do?

Ofgem’s advice is clear:

• Do not switch suppliers at this time
• Take a meter reading
• Wait for communication from the new supplier
  
  

While the collapse of Tomato Energy is unfortunate, it serves as a reminder of the regulatory safeguards now in place to protect consumers. 

For legal professionals in the energy sector, it further highlights the role of compliance and financial resilience when navigating such a complex market.