Commenting on Ofgem’s announcement that Toto Energy has ceased to trade Robert Buckley Head of Retail and Relationship Development at Cornwall Insight, said:
“Failure of any business affects many people, including its customers, and it is always sad to see one fail.
“The Renewables Obligation (RO) deadline is looming, and Toto Energy was under scrutiny by Ofgem about its ability to pay its RO bill. Any shortfalls in the RO payments will be mutualised across the market and end up ultimately in consumer bills.
“Ofgem is currently consulting on a monitoring framework for smaller energy suppliers. While events like this will increase the pressure for more robust rules for such companies, we do need to be careful that genuine innovation and new business models are not squeezed out.”
