Uswitch comments on Tonik Energy exiting the market

Will Owen, energy expert at Uswitch.com, said:

“There were warning signs last week as Ofgem started the process of pursuing Tonik Energy for £8.8 million owed due to Renewable Obligations and other payments[1].

“Many energy companies, particularly the smaller challenger brands, operate on thin profit margins. The Covid-19 lockdown has also resulted in many customers delaying or missing payments, leaving some suppliers without the cashflow to keep going day-to-day. 

“Ofgem will now choose a new supplier for the 130,000 households affected by this news. Customer energy supplies will, however, continue as normal and credit balances will be protected.

“Tonik Energy customers should wait until they know the final details of the new energy company selected by Ofgem, and the tariff that they will be offered, before they try to switch to another provider. 

“While they’re waiting for this to happen, we would urge Tonik Energy customers to note down their meter reading now, and again when they are contacted by the new supplier, so they can ensure their bills are accurate. 

“If you have been affected, run a price comparison to see if switching to another supplier will offer better value for money. You will not be charged exit fees for moving to another supplier.”