Tonik Energy: What customers need to know in 2022

Tonik Energy had a great value proposition, promising to offer their customers a chance to “‘be part of the green energy revolution’ with prices that don’t cost the earth”. Tonik referred to its customers as “members” and had a refreshing and innovative approach to energy that earned them a healthy number of loyal customers. These “members” included homes with their own solar panels, wind turbines and other clean forms of off-grid energy production. Through their “members” Tonik Energy aimed to create a virtual power plant by bringing people together who generate, store and sell renewable electricity to one another as well as the National Grid.

Why did Tonik Energy go bust?

After just 5 short years of operations, Tonik Energy went into administration and ceased trading at the start of October 2020. This came as a shock to many of the supplier’s loyal customers. Indeed, in a few short years they had amassed over 100,000 customers. Offering affordable, renewable energy and great customer service, they appeared to be everything consumers could want in an energy supplier.

However, their affordability may have caused a cash flow crisis that crippled the business.

Tonik Energy made affordability its highest priority, bringing customers 100% renewable electricity at great prices; this might have contributed, in part, to its downfall. All-too-often, smaller suppliers try and undercut their larger competitors on price, meaning that they operate with razor-thin profit margins. As costs accumulate and revenues aren’t adequate to cover costs, it’s only a matter of time until any business faces a liquidity crisis.

Ring the alarm

Alarm bells rang for many when the energy industry regulator Ofgem announced that it was pursuing Tonik Energy (along with 6 other suppliers) for failing to make payments for Feed in Tariffs. You can see the final order on Ofgem’s website. Between them, these 7 suppliers owed a collective £34 million to Ofgem according to consumer affairs magazine This Is Money.

Whatever the cause of Tonik Energy’s failure, it remains an unfortunate cautionary tale for energy suppliers and consumers alike.

However, it should not dissuade energy consumers from pursuing the best deals with smaller energy suppliers. Smaller suppliers can often provide better energy deals and superior customer service than some of the bigger energy suppliers.

And in the unlikely event that a supplier does fail, consumers’ supply and domestic credit balances are always protected.

Who now supplies power to former Tonik Energy customers?

As soon as Tonik Energy announced that they were going into administration, customers were understandably concerned about what would happen to their energy. Fortunately, energy regulator Ofgem has a responsibility to ensure that customers are not left without supply if their current supplier fails.

On the 9th of October 2020, Ofgem announced that Tonik Energy customers would be served by Scottish Power as of 10th October 2020. You can read more, including some frequently asked customer questions, on Ofgem’s website.

Do I have to remain with Scottish Power now that Tonik Energy has stopped trading?

No. And the truth is that you probably shouldn’t. According to Ofgem’s operational practices, all customers migrating to Scottish Power are on a “Deemed Contract”. This is the same sort of contract that you have with a previous occupant’s energy supplier when you move into a new home. As in that scenario, it’s in your best interest to change energy supplier (or at least your tariff) quickly.

Although Scottish Power has a 100% renewable electricity tariff (they actually generate wind energy as well as supplying it), they are rarely the cheapest supplier. As we see from their reviews on Trustpilot, they don’t have the best track record for customer service either.

Even if you are happy with the level of support you’ve received from Scottish Power thus far, you should certainly look into changing your tariff. You might realise savings doing so!

Scottish Power’s Electricity and Gas plans

Scottish Power has a wide range of tariffs available. As standard to most energy suppliers, these include single tariffs, as well as dual fuel, including fixed and variable plans. First, let’s take a look at Scottish Power’s plans available for both existing and new customers:

Below you can find the cost information associated with these tariffs.

Scottish Power Variable Rate Tariffs

Scottish Power currently only offers its standard variable tariff. With variable tariffs, the price rises and falls according to the market price. They offer the user flexibility in terminating the contract, but also carry the risk of potentially higher prices.

The costs associated with this tariff can be seen here:

Scottish Power Fixed Rate Tariffs

Scottish Power has several fixed rate tariff plans. We have an overview of them down below.

The pricing on these tariffs can be seen here:

Scottish Power Gas Prepaid Tariffs

Scottish Power does also allow the use of prepaid meters. With this type of meter, you do not pay based on consumption, but instead top up your meter and the credit is slowly reduced.

Costs associated with this tariff plan can be seen here:

Scottish Power Economy 7 Tariffs

Commonly referred to as double power, Scottish Power offers Economy 7 tariffs for those who have an Economy 7 meter installed.

As mentioned earlier, these tariffs have two different tariffs, one for peak consumption periods and one for off-peak periods.

Pricing on these tariffs can be seen here:

Was Tonik Energy a good supplier?

Tonik Energy managed to accrue 130,000 loyal customers in just 5 short years. But how happy were these customers? Looking at their Trustpilot reviews may not necessarily be the best indicator as many negative reviews are left by customers who are disgruntled at the company’s administration and / or the move to Scottish Power and lack of clarity as to what kind of tariff former Tonik Energy customers have been moved to. What’s more, there are a curious spate of 5 star reviews left even after Tonik Energy went bust.

Nonetheless, when we delve in a little deeper we can get an insight into how Tonik Energy’s “members” felt about them.

Of the 9,782 reviews left on Trustpilot.

• 5,929 (61%) were “Excellent”
• 1,133 (12%) were “Great”
• 295 (3%) were “Average”
• 348 (4%) were “Poor”
• 2,077 (21%) were “Bad”

Positive reviews focused on pleasant and helpful staff, fast and decisive responses to queries and issues, ease of switching, and the renewability of their tariffs. Positive reviews also highlight a few of Tonik’s exemplary operational practices, such as referral schemes, free boiler servicing and allowing customers to earn interest on their credit when their direct debits exceed their usage.

Aside from the angry reviews left in the wake of the company’s closure (and the settlement of money owed to reviewers), negative reviews focused on billing inaccuracies with severe over-estimates, and communications difficulties with employees.

How many customers does Tonik Energy have?

By the time they went out of business, Tonik Energy had over 130,000 customers. All of whom are now supplied by Scottish Power at the behest of Ofgem.

Some may argue that Tonik Energy’s customers would have been better served by moving their supply to a smaller provider with a greater emphasis on renewability and more comparable rates / Feed in Tariff rates.

While the collective aspect of Tonik Energy’s business plan would have been difficult to replicate, no matter which supplier was chosen, there are many former Tonik Energy customers who may feel that Scottish Power is not a good fit for them as energy consumers. Even if they do have a commitment to renewable electricity.

Need an alternative supplier in the wake of Tonik Energy’s closure? We’re here to help!

If you were a Tonik Energy member, you are now a Scottish Power customer. And whether you want to change suppliers or not, you’ll definitely want to get off the sub-par rate you’ll be getting on your “deemed contract”. But after all the disruption you’ve experienced you may not have the time or the inclination to search for a new energy supplier.

Don’t worry, that’s where we come in!

We can scour the market for a supplier and tariff that meets your needs, matching or even surpassing the deal you were getting with Tonik Energy. What’s more, we can manage every aspect of your switch from end-to-end. So you can enjoy cheaper, greener energy hassle-free.

All it takes is a single phone call!

Get touch with us today on 0330 540 017. We’re available from 8.30 am to 5.30 pm.

Read More about other energy suppliers:

• Together Energy
• Bulb
• Outfox the Market
• So Energy

FAQ

Why did Tonik Energy go bust?

No definitive cause has been identified for Tonik Energy going bust. However, many suspect that the brand’s low prices and ambitious operating practices created cash flow problems that resulted in an inability to pay its debts, including millions owed to Ofgem, and customers with Feed in Tariffs.

Where is Tonik Energy based?

Tonik Energy was based in Birmingham. However, their offices are now no longer contactable.

How do I contact Tonik Energy?

Unfortunately, as Tonik Energy have ceased trading, they can no longer be contacted. Their website urges former customers to contact Scottish Power who have taken control of their customers’ energy supplies. Email them at contactus@scottishpower.com, or call 0800 040 7181.

How do I cancel my Tonik Energy account?

If you were a Tonik Energy customer you do not need to cancel your account. It has already been transferred over to Scottish Power. However, we recommend contacting Scottish Power to see if they can assign you to a more favourable tariff than you’ll currently be getting on your "deemed contract" or even looking into an alternative supplier.