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Toto Energy stops trading

Written By:
Guest Author
Posted:
24/10/2019
Updated:
24/10/2019

Guest Author:
Emma Lunn

Customers of the challenger brand have been advised to sit tight while Ofgem appoints an alternative supplier.

Toto Energy, an energy supplier with around 134,000 domestic customers, has ceased to trade. The announcement was made both on Toto’s website and by the regulator Ofgem.

Under Ofgem’s safety net, the energy supply of Toto Energy’s customers will continue and prepayment meters can be topped up as normal. The outstanding credit balances of customers will be protected.

Ofgem will choose a new supplier to take on all of Toto Energy’s customers. The regulator is advising Toto Energy’s customers to sit tight at the moment and not switch to another energy supplier until a new one has been appointed and been in contact.

However, customers should take a meter reading now, ready for when the new supplier gets in touch. Ofgem says this will make the process of transferring customers over to the chosen supplier, and paying back any outstanding credit balances, as smooth as possible.

Philippa Pickford, Ofgem’s director for future retail markets, said: “Toto Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and customers’ credit balances are protected.

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“Ofgem will now choose a new supplier for you and whilst we’re 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.”

Toto Energy took on about 43,000 of Solarplicity’s customer base in July following complaints about poor customer service and subsequent intervention from the energy regulator Ofgem.

However, Toto had also been on the end of criticism from customers with many complaining about poor service, delays to credit balance refunds and long waits to speak to customer services. It also received a warning from Trustpilot after it emerged that a manager at the firm appeared to ask other staff to leave five-star reviews on the review site.

Toto is the 14th energy firm to cease trading in the past year. Others include Usio Energy, Extra Energy and Eversmart.

Earlier this week Ofgem announced it was introducing tough new rules for small energy suppliers to reduce the risk of them going bust.

Peter Earl, head of energy at Compare The Market, said: “Just days after Ofgem announced proposals to implement new financial checks and tests for existing energy providers, Toto Energy becomes the 14th supplier to collapse in the space of a year. Such a pattern of supplier failures underlines the urgent need for new entrants to the energy market to be thoroughly vetted. A red flag for the viability of Toto Energy was Ofgem ordering the provider to pay £4.5million in outstanding Renewables Obligations earlier this month.


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