Tonik Energy Goes Bust: What Happens Next?
Tonik Energy is the latest supplier to close its doors, following unpaid renewable scheme fees of £8.7million.
Britain’s energy regulator Ofgem has appointed Scottish Power to take on supplying the Birmingham-based provider’s 130,000 customers.
Tonik has been struggling financially in recent times, owing £8.7 million in payments to Ofgem and the supplier had recently been flagged by network administrator Elexon as being in credit default. All 250 of its employees are expected to be made redundant following the announcement.
Tonik’s collapse comes less than a week after Ofgem reported that seven British energy providers - Tonik, Co-operative Energy, Flow Energy, MA Energy, Nabuh Energy, Robin Hood Energy and Symbio Energy - owed a total of £34 million in renewable power generation scheme payments.
Several suppliers have gone under over the last two years due to shrinking profits related to renewables fees and the Ofgem price cap.
Other recent high-profile failures have included Breeze, Economy Energy, Go Effortless Energy, Solarplicity, and Spark Energy.
What does Tonik say about the collapse?
Chris Russell, Chief Executive of Tonik, had not responded to requests for comment at the time of publication. The supplier’s social media accounts on both Facebook and Twitter have been deactivated.
Customers attempting to log in to the Tonik Energy website on Tuesday were met with the following message:
“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.”
What to do if you've been affected
The good news is that, under Ofgem’s safety net, you will continue to receive your gas and electricity supply and any outstanding credit balances will be protected.
The energy watchdog has nominated Scottish Power to take on Tonik’s customers. You can choose to either stay with Scottish Power or switch to another energy supplier without paying any exit fees.
Philippa Pickford, Director of Retail at Ofgem, said: “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.
“Scottish Power will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to.”