British Gas has been appointed to take on around 23,700 customers after the collapse of energy supplier Tomato Energy.
The failed firm owed more than £3million in unpaid debts when it ceased trading last week.
Ofgem confirmed on Sunday that the transfer covers 15,300 household and 8,400 business accounts.
The regulator said its action would ensure customers continue to receive energy without interruption.
Tomato Energy employed about 100 people and is expected to enter formal administration within days. Its collapse is the latest in a series of supplier failures seen across the market in recent years.
Ofgem said all power supplies would remain unaffected during the transition, with British Gas assuming immediate responsibility for affected accounts.
The company had faced growing regulatory pressure throughout 2024.
In April, Ofgem barred Tomato Energy from taking on new customers after its debts mounted.
British Gas to absorb 23,700 customers following collapse of Tomato Energy
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GETTY
Further action followed in October, when the watchdog proposed a £1.5million fine for breaching financial resilience rules. Directors notified the regulator at the end of the month that they intended to appoint administrators.
The developments mark the end of a difficult period for the supplier, which struggled to meet regulatory standards while managing heavy debts.
Domestic customers have been told their credit balances will be protected in full.
The energy price cap will apply to all transferred household accounts under British Gas. Business customers will also retain continuous service.
Tomato energy has ceased trading
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GETTY/Tomato energy
Rohan Churm, Ofgem’s director for financial resilience and controls, said: “Minimising the disruption to customers is our top priority when a supplier exits the market, so I am pleased to confirm British Gas has been appointed to take on customers of Tomato Energy and will work to move their accounts in the coming days and weeks.”
Affected consumers will be free to switch suppliers once the transfer is complete, though Ofgem has urged them to wait until the process finishes.
Centrica chief executive Chris O’Shea criticised the regulator following the latest collapse.
“Tomato’s demise marks the 31st supplier to collapse since 2021,” he said.
He warned that the repeated failures have driven up costs for consumers
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GETTYHe warned that the repeated failures have driven up costs for consumers.
“Ofgem’s inaction on financial resilience has left customers exposed for too long, and every household in the UK has faced a £100 bill as a result of these failures,” Mr O’Shea said.
The Centrica boss called for urgent reform to prevent further market disruption, saying: “Ofgem must ensure all suppliers are robust, comply with capital adequacy rules, and ring-fence customer funds to prevent this cycle from repeating.”
He also accused the watchdog of inconsistent treatment of companies, adding|: “Recent reports suggest Ofgem has relaxed the rules for large suppliers in financial distress, even as Tomato was allowed to fail. Greater transparency is needed so customers can understand what is happening and decide whether suppliers deserve their trust,” Mr O’Shea added.