130,000 customers told to ‘sit tight’ as energy firm goes bust

Birmingham-based energy provider Tonik Energy has gone bust, leaving 130,000 customers without a supplier.

In a statement on its website, the business said its customers should “sit tight” while Ofgem appointed a new electricity supplier for its domestic customers after the company failed to pay its renewables fees.

The statement 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.”

Last week, a string of energy suppliers were ordered to pay out £34m to Ofgem in order to meet their renewables obligations.