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Gas and electricity firm Tomato Energy has collapsed, forcing the industry's watchdog to step in and protect supply for 15,300 household and 8,400 business customers. Admistrators were called in at the end of October after the firm racked up £3million in debt and were banned from taking on new customers in April. With no rescue deal,Tomato Energy is now closing down - but its thousands of customers won't see their energy cut off, Ofgem said today. Rohan Churm, director for financial resilience and control, said: "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. "We are working quickly to appoint a new supplier for all existing customers, and they should not switch in the meantime. Once appointed, a new supplier will be in touch with further information." Ofgem will contact Tomato Energy customers to inform them when a supplier has been appointed to take on its supply. Customers will be put on a "deemed" contract, which could cost more, but can be cancelled at any time. Energy suppliers are now required to keep a financial safety buffer after 30 firms collapsed in less than a year. Fewer companies have gone bust since the new rules were introduced, but Churm said: "We have worked hard to improve the financial resilience of suppliers in recent years, implementing a series of rules to make sure they can weather unexpected shocks. "But like any competitive market, some companies will still fail from time to time, and our priority is making sure consumers are protected if that happens and that any associated costs are minimised."
