Around 130,000 Tonik Energy customers have been caught under Ofgem's safety net following the energy supplier ceasing trade.
All customers will continue with energy supply and all outstanding credit balances they might have had with Tonik will be honoured.
Ofgem now has the task of choosing a new supplier to take on all of Tonik's customers. All customers will be contacted when this decision has been made to be notified who their new supplier is.
Ofgem strongly advise Tonik's customers to not switch until a new supplier has been appointed, and you have been contacted by them in the following weeks, in order to ensure outstanding credit balances are protected, and to take a meter reading ready for when the new supplier gets in contact to guarantee accurate initial billing.
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."
“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.”
Victoria Arrington, spokesperson for Energy Helpline said:
“While supplier failures have been very low this year, this news may come as unsettling to Tonik customers. However, their energy supply will continue as normal and any credit balances will be protected through regulator Ofgem's safety net. Customers will be automatically moved to an appointed 'supplier of last resort' by Ofgem and it's important that the new tariffs offer good value for money."
“We would recommend that, once customers are moved to the new supplier, they take an up-to-date meter reading and run a price comparison to see if there is a better deal elsewhere on the market. Any exit fees for moving to another provider will be waived and they could end up lower bills."
"Energyhelpline.com has predicted a full-time working household will spend an extra £107 on energy this winter (October-March) due to increased working from home, so it's important that consumers are on the lowest energy tariff before the cold weather starts to bite."