Energy company with office in Wolverhampton faces £1.5 million fine, Ofgem confirms
An energy company with an office in Wolverhampton faces being hit with a £1.5 million fine, the energy regulator Ofgem has confirmed.
The Office of Gas and Electricity Markets, the energy regulator for Great Britain, has published a notice of a proposal to impose a financial penalty on Tomato Energy for failing to meet its financial obligations.
The Baskingstoke-based company, which has an office in Mander House in Wolverhampton, has been under investigation by Ofgem over ongoing non-compliance issues and the regulator has confirmed it is now proposing to impose a financial penalty of £1.5 million.
A notice on the Ofgem website states: “Ofgem is publishing a proposal to impose a penalty on Tomato Energy because of its non-compliance with the issues linked to the provisional order published in April.
“We are proposing a financial penalty requiring it to pay £1,500,000. This is for breaching the standard licence condition that requires it to obtain and maintain liquidity at a level that enables it to pay its ongoing financial liabilities.”
The energy business had already been banned from signing up new customers following investigations by Ofgem into its finances, with the regulator publishing a Provisional Order on April 11.
After an August 31 deadline for Tomato Energy to obtain and maintain “sufficient liquidity to meet its reasonably anticipated financial liabilities on an ongoing basis” passed - a ‘notice to rectify’ was issued and Ofgem said it may consider revoking Tomato Energy’s licence.
Enforcement documents published by Ofgem regarding the penalty notice state: “The Authority is satisfied that Tomato Energy has, since April 10 2025, contravened, and as of October 10 2025 is contravening, its obligation to ensure that it maintains 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.
“The Authority hereby gives notice of its intention to impose a penalty of £1,500,000 on Tomato Energy.”
The documents say a financial penalty is necessary and proportionate as it deems Tomato Energy to have enjoyed a financial benefit with detriment to its creditors - adding that a financial penalty would help to deter future misconduct by Tomato Energy and other industry participants.
The penalty notice documents add: “We have taken into account that Tomato Energy has been in financial distress and therefore at heightened risk of exiting the supply market due to insolvency for a prolonged period. The Authority will carefully consider any representations or objections to the proposal.”
The company now has until 4pm on November 3 to make any representations before Ofgem makes a final decision on imposing a penalty.
Tomato Energy has been contacted for comment.
