Toto Energy, a small energy supplier, has stopped trading, according to regulator Ofgem. The news has affected tens of thousands of customers currently using the vendor. A statement from Ofgem said: "Toto Energy, an energy supplier with about 134,000 domestic customers, has stopped trading." These customers can run out of gas or electricity – what should you do?
About 134,000 families were at risk of running out of gas or electricity after the announcement.
However, those who trust the gas and electricity supplier may not feel the immediate effects.
Ofgem has revealed that it will try to find a new supplier to attract customers, meaning that homeowners are unlikely to see their gas or electricity stop.
They said: "Under Ofgem's safety grid, Toto Energy customers' power supply will continue and prepayment meters can be recharged normally.
“Clients' outstanding credit balances will be protected.
“Ofgem will choose a new supplier to serve all Toto Energy customers. This supplier will contact these customers shortly after appointment. "
The regulator urged those affected not to switch to another power supplier until a new one is indicated.
They also encouraged homeowners to take a meter reading to ensure they are ready when a new supplier contacts them.
Those with unintelligent prepayment meters should continue to use their recharge devices until they are replaced by the new vendor.
Once a new vendor is found, affected customers can switch without paying an exit fee.
Although the company has gone bankrupt, those who sign up will probably not realize that its supplier is changing, Natalie Hitchins, Which? head of household products and services, he explained.
She said: “While Toto Energy's customers may be naturally anxious about the bankruptcy of Toto Energy, there is no need to panic as the power supply will continue as normal while the power regulator appoints a new supplier to take control.
"We advise customers to read the meter as soon as possible to ensure the transition is as smooth as possible.
“Once the changeover to the aftermarket supplier is complete, we will urge people to compare suppliers to find the best deal available to them, both for price and customer service.
“This last failure of the company reinforces why Ofgem's proposals for stricter supplier checks are vital.
"They must ensure that all suppliers are fit for purpose and facilitate the eradication of those whose standards are falling in order to build trust in the industry."