Investigation into Tomato Energy Limited (formerly Logicor Energy Limited) and its compliance with its obligations under SLCs 4A and 5 of the Electricity Licence

On 16 November 2023, Ofgem opened an investigation into whether Tomato Energy was in compliance with Standard Licence Conditions ("SLC") SLC 4A and 5 of the Electricity Supply Licence.

These SLC’s relate to Operational Capability (SLC 4A) and the Provision of Information to Authority and Data Retention (SLC 5).

The below sets out the findings of Ofgem’s investigation, actions taken by Tomato Energy to resolve the issues and our reasons for closing the investigation by way of Alternative Action on payments being made to Ofgem’s Voluntary Redress Fund (administered by the Energy Saving Trust) in accordance with our Enforcement Guidelines rather than impose a financial penalty.

Background

Tomato Energy Limited is a UK based domestic and non-domestic energy supplier based in Hampshire.

Ofgem’s investigation into Tomato Energy focused on the following:

• processes and procedures in place to comply with regulatory requests for information
• process and procedures in place to effectively ensure operational capability
• ability to respond to information requests to the required standard as set out in the Standard Licensing Conditions

Investigation outcome

The investigation concluded that Tomato Energy acted in contravention of SLCs 4A and 5 in respect to Tomato Energy’s:

• reliance on a third party, acting under a White Label Agreement, to provide consumers with appropriate levels of protection from harm
• incorrect migration of consumers on fixed term tariffs to variable rate tariffs before the end date of their fixed term agreement
• failure to interpret the SLC’s (incorrectly charging consumers at Standard Credit (“SC”) rates instead of Direct Debit (“DD”) rates)
• having insufficient processes and procedures in place to comply with regulatory requests for information
• having insufficient process and procedures in place to effectively ensure operational capability
• an inability to supply information in a timely manner when requested by Ofgem, and the submission of inaccurate, incomplete and conflicting information

Ofgem takes the fair treatment of customers very seriously. During this investigation, it became apparent that Tomato Energy had significant gaps in their customer service procedures which exposed customers to an increased risk of harm.

Tomato Energy proactively and constructively engaged with Ofgem and has identified and/or rectified process gaps during the investigation. As a result:

• Tomato Energy has accepted the findings of the investigation
• Tomato Energy has submitted a payment of £1,500,000 to Ofgem’s Energy Industry Voluntary Redress Fund
• Tomato Energy has agreed to make Consumers Redress payments to affected consumers within thirty days amounting to £50 per consumer for those affected by the incorrect migration from a fixed term tariff to a variable rate tariff and £10 per consumer for those notionally effected by the misapplication of Standard Credit rates instead of Direct Debit rates

Closure of this investigation has no impact on, and should not be associated with, the Provisional Order served to Tomato Energy on 10 April 2025.