Business

Energy company faces losing licence over £3m debt

By Steve Humphrey

Copyright bbc

Energy company faces losing licence over £3m debt

Tomato Energy released a statement following the warning in which it 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. ”

In another investigation into Tomato Energy, Ofgem found “significant gaps in their customer service procedures”.

The regulator confirmed the company had been ordered to pay £1.5m into the Voluntary Redress Fund, which supports vulnerable consumers.

Since its establishment in the 1990s, Ofgem said more than 40 small to medium-sized energy companies have gone out of business, with sharp increases in wholesale energy prices in recent years impacting the industry as a whole.