The Gas and Electricity Markets Authority (“the Authority”) is launching an investigation into whether Tomato Energy Limited (“Tomato”), are in compliance with rules around operational capability, maintaining sufficient levels of Capital and Liquidity and reporting financial Trigger Points appropriately to the Authority.
Tomato Energy Limited is a UK based domestic and non-domestic electricity supplier with their registered office in Hampshire, England.
The investigation will examine whether Tomato Energy Limited is in compliance with the requirements of Standard Licence Conditions (SLC) 4A.1, 4B.1 and 4B.8.
SLC 4A.1 requires supply licensees to ensure they have and maintain robust internal capability, systems and processes to enable the licensee to:
SLC 4B.1 requires supply licensees to maintain Capital and Liquidity of sufficient amount and Quality that it is able to meet its reasonably anticipated financial liabilities as they fall due on an ongoing basis.
SLC 4B.8 requires supply licensees to notify the Authority in writing: (i) as soon as reasonably practicable but no later than 7 days after it becomes aware that there is a Material risk that any of the defined Trigger Points will occur; and (ii) as soon as reasonably practicable but no later than 7 days after it becomes aware that any of the defined Trigger Points have occurred.
On 10 April 2025, the Authority issued a Provisional Order to Tomato in accordance with section 25(2) of the Electricity Act 1989.
It appears to the Authority that Tomato is contravening, or likely to contravene: SLC 4A, SLC 4B.1 and SLC 4B.8.
The Provisional Order sets out a number of actions for Tomato to complete by specified deadlines. These include the requirement not to act in contravention of SLC 4A and 4B.8, to bring themselves into compliance with SLC 4B.1, and to refrain from all sales, marketing and customer acquisition activity, including the acquisition of any new domestic and non-domestic customers, until the Authority is satisfied the conditions in the Provisional Order have been met. The Authority also requires an expert report on the licensee’s compliance with SLC 4B.1.
Full details are contained in the Provisional Order and the Notice of Reasons.
The opening of an investigation does not imply that Ofgem has made any findings about non-compliance.