Tomato Energy

[johnb80]

Don't confuse energy retailers with energy suppliers. Octopus Energy posted profits of £159m in post-tax profit for the year ending April 30, 2024. That's a 12% dip compared to 2023, when it recorded £182m in profit. This represent a 0.7% profit margin from nearly 7 million households and group revenue of 12.4 billion. A lot of their money is made through their software Kraken.

I havent confused anything.

Others, Octopus included have no problem in reading Smets1 meters, mine is one.

I also understand this but it does seem to be an issue for Tomato. Oddly, my business premises have a 'half hour' meter, Octopus wont even quote for energy because they cant read them, Tomato, no problem, EDF no problem.

So how can Tomato sell it's electricity so much cheaper than everyone else and cut the standing charge?

People used to say exactly this when Octopus first started, I assume they can do it by lower overheads and being a streamline operation. I guess, time will tell.

 

[Gomev]

I havent confused anything.

So you consider Octopus profits to be huge ?

 

[johnb80]

So you consider Octopus profits to be huge ?

Relatively, yes, £159M is hardly being on the breadline. I dont begrudge them making a profit only suggested a way that Tomato could be supplying energy at a lower price in answer to your question.

 

[mg4nick]

I heard a new company "Skynet" will soon take over the retail energy market with 0 overhead (it will run on its own solar panels and wind turbines).
Everyone will have access to energy at wholesale prices.

Hm... Where exactly did this come from (these AIs are everywhere)...

 

[Everest]

So how can Tomato sell it's electricity so much cheaper than everyone else and cut the standing charge?

People used to say exactly this when Octopus first started, I assume they can do it by lower overheads and being a streamline operation. I guess, time will tell.

Or... by simply by not correctly estimating their anticipated demand and then not settling their imbalance payments fully. Hence that is why Elexon made public Tomato's EFR figures to force them to do something about it.

https://www.elexon.co.uk/bsc/article/public-notification-of-tomato-energy-limiteds-lack-of-progress-against-its-efr-milestones/

Maybe that is why they've stopped taking on new customers? And why the CEO has referred to settling late payments. How they will do that without billing everyone promptly is puzzling to me, though.

 

[Gomev]

Relatively, yes, £159M is hardly being on the breadline. I dont begrudge them making a profit only suggested a way that Tomato could be supplying energy at a lower price in answer to your question.

£159M is a substantial sum as a number, but that is from 7 million customers so that's less than £23 per customer, not forgetting that Octopus also undercuts the cap by a small amount. That also includes profits from providing it's Kraken software elsewhere. So the question still remains how can Tomato sell to their customers hundreds of pounds cheaper per year when regulation only allow a 2.4% (£45 based on cap) profit anyway.
I hope they succeed and everything is rosy so others can copy their super low prices, we'd all like that.

 

[Susanna]

I could understand my situation if I had an old meter. However, I had a new SMETS2 meter installed just a week or so before transferring to TE. Additionally, I sent meter readings to them when requested. I have my gas via Scottish Power, and they seem totally unable to read my meter either, but bill me immediately after I send my readings through.

 

[Everest]

If two suppliers can't read your meter, I wonder if there is an issue with your meter connecting to DCC, which will be over O2's mobile network in your area?

 

[Susanna]

When I contacted Scottish Power, I just received a message that my meter is not communicating with them, and there are no available appointments.

It’s irritating, as my meters are in my garage, and high enough for me to have to use a step ladder to read them.

 

[Bam Bam]

Jonathan Tracey summarizing the Tomato failure concerns:

 

[salty]

Mmmm, I'm no expert. But it ain't looking good.

 

[Everest]

We'll see... but I did warn in post #303 back in February

 

[MDWMG]

I've been with Tomato Energy on the Lifestyle Fixed EV tarrif since October and very pleased with it, but have reluctantly initiated a switch back to Octopus.

Here's my reasoning:

1 We are hoping to move house in the next couple of months, and Tomato is presently unable to supply our next home, as they class that as a new connection.

2 I don't want to risk being trapped on a basic price cap tariff if Tomato go under, nor would I wish that on the people who are buying our current home

3 The house we're moving to is currently supplied by Octopus (which hopefully will make the move straightforward), but doesn't have smartmeters; my experience with getting Octopus to provide them is good, whereas there are reports of people having difficulty getting them Installed with Tomato.

4 Octopus say they are aiming to do the switch in under a week, so I can be reasonably sure it will have happened and the billing sorted before we move

If we weren't moving, I would stay with Tomato until their situation becomes clearer. I've become accustomed to their low rates and made good use of both the nighttime and morning cheap periods. Let's hope they survive.

 

[MDWMG]

just worked out that the switch from Tomato's 2024 Lifestyle EV tariff to the current Octopus GO rates will cost me over £300 a year

 

[Kenp1]

just worked out that the switch from Tomato's 2024 Lifestyle EV tariff to the current Octopus GO rates will cost me over £300 a year

Wos, that's about 6 months of electricity for me.

 

[MDWMG]

Wos, that's about 6 months of electricity for me.

Looking at if the other way, it means I've saved £150 or so in the 6 months since I switched from Octopus GO to Tomato.

 

[Everest]

...
2 I don't want to risk being trapped on a basic price cap tarrif if Tomato go under, nor would I wish that on the people who are buying our current home

3 The house we're moving to is currently supplied by Octopus (which hopefully will make the move straightforward), but doesn't have smartmeters; my experience with getting Octopus to provide them is good, whereas there are reports of people having difficulty getting them Installed with Tomato.

4 Octopus say they are aiming to do the switch in under a week, so I can be reasonably sure it will have happened and the billing sorted before we move

If we weren't moving, I would stay with Tomato until their situation becomes clearer. I've become accustomed to their low rates and made good use of both the nighttime and morning cheap periods. Let's hope they survive.

I must be getting old.. my eyesight has just failed

 

[Rolfe]

I must be getting old.. my eyesight has just failed

Sorted. I presume it was a mistake.