Business Energy Market Update: November 2025

As the ghouls descended for Halloween, far less frightening is the UK power market. Helped by stronger wind output during October, day ahead has slipped to just £53/MWh, down from £73 at the start of the month.

Sadly this trend did not quite extend to the rest of the forward market, which remained almost completely static through the month, with only fractional losses to be seen on contracts for delivery from 2026 onwards.

Gas contracts also followed a similar trend to power, although there was no sharp decline in day ahead pricing which remained at 75p/th. Strong Norwegian gas flows and warmer-than- average temperatures saw European gas storage at 83% capacity helping to stabilise forward contracts for this winter which remained around 80p/th.

The talk of the energy industry last month has been the tribulations of distressed energy supplier Tomato Energy, who now look set to collapse imminently. On Wednesday 22 October ELEXON, the not-for-profit operator of the UK Energy market, decided to effectively exclude Tomato Energy from further participation in the energy market, after its credit position became significantly worse.

As recently as 13 October, Tomato issued a Notice of Intent that it was seeking to appoint administrators in a last attempt to avoid being forced into insolvency, after being previously being banned from acquiring new customers in April over an unpaid debt of £3million.

Despite securing an extension to the NOI, Tomato felt further pressure when OFGEM also issued a public notice that it was considering an additional fine of £1.5million for financial mismanagement and a failure to adhere to key licensing conditions. One can’t help but question the logic of imposing such large fines on an already stricken firm, which will all but guarantee yet another energy company failure, leaving everyone else with no choice but to pick up the tab. This latest news will no doubt be a further blow to the firm’s staff who will be concerned for their future employment with the company.

But what of its customers? OFGEM have yet to formally step in, but it now seems likely they will be forced to act and appoint a supplier of last resort. When this happens the customers of a failed energy supplier are moved to a more financially stable company and should this occur, there is no interruption to energy supply with any credit balances protected, but please ensure you take a meter reading and photo, even if you have smart meter.

Tomato Energy will be the second major energy supplier to go bust this year after Rebel Energy filed for administration in April leaving the firm’s 90,000 customers without a supplier. At the height of the energy crisis nearly 30 energy suppliers went bust, prompting OFGEM to introduce new tighter rules around financial stability, and there have been fewer failures in recent times.

The team at Clear Utility are ready for any eventuality. We are prepared and will act swiftly to assist any of our customers that may be affected. We will be in touch in due course, but feel free to get in touch on our usual channels if you have any immediate questions.