Scottish Power takes on Tonik Energy’s customers

What happened?

Tonik Energy went out of business after it failed to meet its Renewables Obligations.

The energy supplier failed to pay what it owed and also was one of two suppliers who failed to pay its contribution for the Feed-in-Tariff levelisation scheme to the sum of £158,814.47.

As a result, Tonik went under resulting in its 130,000 customers to be left without their chosen energy supplier.

Under Ofgem’s Supplier of Last Resort (SoLR) scheme, those customers have now been handed over to Scottish Power and reassured that their energy supply would see no disruption.

Scottish Power will now take on all outstanding credit balances, including the money owed to both current and former domestic customers.

Also read: What is a Supplier of Last Resort (SoLR)

Smooth transition promise

Andrew Ward, Scottish Power CEO, UK Retail, said: “We would like to welcome Tonik Energy customers to Scottish Power. They are joining a safe and stable integrated energy company focussed on achieving net zero through a green recovery. We understand that this can be a stressful time, but we would like to reassure every one of our new customers that they do not need to worry and should sit tight. We will be in touch soon about what we will do next to ensure everything runs smoothly over the next few weeks.”

Scottish Power has reassured their new customers that over the coming weeks it will ensure that the transfer occurs smoothly and that their electricity and gas supplies will not be disrupted. A dedicated phone line and call centre are now operational for its customers.

What are the Issues a SoLR may face?

Energy suppliers designated as SoLR face various challenges with the most common likely to be the issue of customer credit. The new supplier will need to reassure their new customers that the credit will be honoured.

A dedicated helpline, webpage or chat function should be dedicated to the issue with instructions on how the credit can be claimed and how the process works.

Ensuring that new customers expectations are managed is also key and it pays to provide honest and realistic timelines.

If the SoLR wants to keep these new customers, they will also need to assure them that they are now in safe hands. It’s a good idea to send them details of your company such as its history, its culture and the things that differentiate it from its rivals. 

Further Reading

Tonik Energy ceases trading as it fails to pay Renewables Obligations

Majority of Energy Suppliers failing to refund credit to customers within 10 days

As Winter approaches three million households are in Energy Bill debt to Energy Suppliers

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