Energy company went bust owing over £60m

Tonik Energy, the failed Birmingham utilities provider, went bust owing over £60 to creditors, new documents have revealed.

The firm went bust in October, 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.

Documents from administrators Deloitte show that £9.1m assets will be available to creditors, while £202,000 will be paid in wages owed and a company called BP Gas Marketing has a secured debt of just over £5m which will be paid back. That leaves just under £4m available to unsecured creditors – and a shortfall of almost £57m.

Earlier in October, Tonik was named as one of a string of energy suppliers which were ordered to pay out £34m to Ofgem in order to meet their renewables obligations.

Scottish Energy took on Tonik’s customers following its collapse following a competitive process run by regulator Ofgem.