Harrogate-based gas and energy supplier CNG has ceased trading after 27 years.
It has now entered the Supplier of Last Resort process operated by energy regulator Ofgem.
The SoLR procedure was established by Ofgem as a safety net to ensure that when a company stops supplying energy, affected customers are guaranteed continuity of supply through other companies.
An email sent to staff this morning by CNG chief executive Paul Stanley, which has been seen by the Stray Ferret, informs employees that the SoLR process has been approved by Ofgem.
The company has posted an update on its website this afternoon that says “After 27 years we are saddened to say CNG Energy Limited is ceasing to trade.”
The email from Mr Stanley said:
“Ofgem has confirmed that the SoLR process has been approved by them and will be on their website from 3pm today.
“We will be amending our website at the same time and we will then be able to offer clearer statements for customer service teams and sales people to use in discussions with customers, broker and other third parties.”
Read more:
- All 145 CNG energy staff in Harrogate set to lose jobs
- Major Harrogate employer CNG ‘enters liquidation’
- Harrogate firm CNG to stop supplying energy companies
The company, which is based on Victoria Avenue, supplied energy to about 15 to 20 retail energy companies through its wholesale business arm and also had around 50,000 business customers.
It had been impacted by spiralling global gas prices over the past few months.
The company is now expected to enter administration and the vast majority of staff made redundant.
Staff have been told that wages for days worked this month are not guaranteed to be paid.
The Stray Ferret has approached CNG for comment.
