Harrogate-based energy supplier CNG Group is to stop supplying gas to energy companies, amid spiraling gas prices that have caused several companies to close.
CNG, which is based on Victoria Avenue, was set up 27 years ago and is one of Harrogate’s major employers with around 180 staff.
It supplies about 15 to 20 retail energy companies through its wholesale business arm. It also has about 50,000 business customers.
However, an email from chief executive Paul Stanley to customers, seen by the Stray Ferret, said the current energy crisis had caused “significant financial damage to CNG” and it was exiting the wholesale market.
The email urged customers to find alternative suppliers.
“The past few weeks in the energy market have been unprecedented. Market volatility has caused many suppliers to exit the market in a short space of time, causing a significant amount of financial damage to CNG.
“We expect more suppliers to fail in the coming weeks, further compounding the issue. We have been exploring options to sustain CNG’s shipping services, but it is with regret that I have to inform you that we do not have any further option but to exit CNG’s wholesale business.
“This means CNG will no longer be able to provide gas shipping services. We advise you to seek alternative shipping arrangements through other known gas shippers in the market.”
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Mr Stanley hailed the company’s return to profit in the latest annual report, published in June. This was in part due to improvements in its now stricken wholesale division.
But since June, the energy crisis has deepened and the future of the company appears uncertain.
Sources told Sky News that CNG was preparing its wholesale business for insolvency. Sky News also reported yesterday that the company has a Friday deadline for bidders for its small and medium-sized enterprises arm, which directly supplies more than 40,000 SMEs.
CNG was formerly the main sponsor of Harrogate Town’s stadium on Wetherby Road, which was called the CNG Stadium.
The Stray Ferret has asked CNG for a statement and if it expects to make any job losses but we had not received a response by the time of publication.