Toto Energy has ceased trading. The firms was one of a number of suppliers Ofgem had ordered to pay millions in overdue Renewables Obligation payments by the end of this month.
Toto owed £4.55m. Nottingham council-owned Robin Hood Energy owes £9.5m, though it will pay the bill after the council this week agreed a bailout. Other firms told to pay by next Thursday include Gnergy, which owes £637,876 and Delta Gas and Power, which owes £91,937.
With more collapses likely, Ofgem this week mooted plans to implement stronger financial checks on existing suppliers. After the last round of failures, the regulator began to put in place checks for new entrants.
When companies go bust owing levies, other suppliers pick up the tab. Those costs are passed on to customers.
Ofgem is thinking about collecting those levies more regularly.