Tonik Energy stops trading – what you need to know
Tonik Energy, a gas and electricity supplier with about 130,000 domestic customers, has stopped trading, and is in the process of appointing administrators.
If you're a Tonik Energy customer, your supply will continue and regulator Ofgem says any credit balances will be protected. Ofgem says it will choose a new supplier to take on Tonik Energy's customers and this supplier will contact Tonik Energy's customers in due course.
Once your new supplier contacts you, you can switch away from Tonik Energy, so it's worth checking you're on the best possible deal – use our free Cheap Energy Club to check if you can save £100s.
I'm a Tonik Energy customer – what should I do now?
For now, Ofgem's advice is:
- Don't switch to another supplier until a new one has been appointed. You should wait until you've been contacted by the new supplier in the coming weeks.
- Do take a meter reading – it'll be useful to have it ready for when your new supplier contacts you. You should do this whether you're a credit meter or prepayment customer.
What will happen to my tariff when I move to a new supplier?
Once a new supplier's been appointed and it contacts you, your current deal will end and you'll be moved on to a special 'deemed' contract (a tariff you won't have chosen), so your bills may go up as a result.
However, once you've been moved across, you can ask the new supplier to put you on a cheaper tariff, or switch away to another provider. If you do switch, you won't be charged exit fees. Once you're with the new supplier, it's best to do a whole-of-market comparison via Cheap Energy Club to ensure you find the best deal for you.
What happens with money I owe or am owed by Tonik Energy?
You may be owed money by Tonik Energy if your account had built up credit.
Ofgem says the supplier it appoints will pay you back any money you're owed – this applies even if you recently left Tonik Energy but haven't had the cash back yet.
Likewise, if you owe money you will likely still have to pay it, though it's unclear currently whether this will be to your new firm or an administrator if and when one is appointed. The process for this should become clearer once a new supplier is appointed by Ofgem.
Should I cancel my direct debit?
There's no immediate need to cancel your direct debit to Tonik Energy. Ofgem says your new supplier will soon contact you to explain how it will take on your account, including any direct debit arrangements. It will also tell you what will happen to any credit balance you may have had.
Ofgem says you can cancel your direct debit before the new supplier contacts you if you want to though. If you've already cancelled it, there's no need to reinstate it, and your new supplier will explain what to do once it gets in touch with you.
I'm in the process of switching supplier – will my switch go through?
If you've already started to switch away from Tonik Energy, you will continue to be moved to the new supplier you have chosen. You should not need to do anything. Your direct debit to Tonik Energy should be cancelled automatically, but check anyway, and if not, cancel it manually after your switch completes.
If you're in the process of switching to Tonik, the switch should go through as planned, although you will be switched to the supplier that Ofgem appoints to take on Tonik Energy's customers.
What does Tonik Energy say?
Tonik Energy – which Ofgem has said is in the process of appointing administrators – gave little detail about why it was stopping trading in a statement on its website. It said: "Tonik Energy 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."
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