Tonik Energy goes bust
Under energy regulator Ofgem’s safety net, Tonik’s customers’ gas and electricity supply will continue uninterrupted. Any outstanding credit balances will also be protected.
Ofgem will now choose a new supplier to take on all of Tonik Energy’s customers. Once this supplier has been appointed, it will contact Tonik’s customers.
A statement on Tonik’s website says: “Tonik Energy (Tonik Energy Ltd) is ceasing to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.
“Customers need not worry, their supplies are secure and domestic credit balances are protected.
“Ofgem’s advice is not to switch, but to sit tight and wait until they appoint a new supplier for you. This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free as possible for customers.”
What should Tonik Energy customers do?
Tonik customers should take meter readings today, if possible, ready for when the new supplier gets in contact.
Ofgem says Tonik customers shouldn’t switch to another energy supplier until a new one has been appointed. You will be contacted by them in the new few weeks.
Philippa Pickford, director of retail at Ofgem, says: “Tonik Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.
“Ofgem will now choose a new supplier for you and whilst we are doing this our advice is to ‘sit tight’ and don’t switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”
Andrew Long, CEO and founder of Switchcraft.co.uk, says: “Today’s news about Tonik energy isn’t a surprise given their £8.7m Renewables Obligation debt. I’m expecting the taxpayer to be picking up the tab, which raises the question of why Ofgem allowed them to continue operating for so long.
“Nabuh and Symbio energy also have substantial debts to the government of £2.7m and £900k respectively, so they may also be in trouble if they can’t secure further investment shortly.
“If you’re with Tonik, there’s no need to do anything right away, but once you’re moved to a new supplier by Ofgem it’s definitely worth checking what pricing they are offering, as your rates may increase.”
Tonik is the latest in a long line of energy suppliers to cease trading over the past couple of years.
Effortless Energy ceased trading last month. Its customer base has been transferred to Octopus Energy.