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16
Nov 2021
Last Updated: 15/11/2021
Ofgem appoints company to take on CNG customers
Energy regulator Ofgem has appointed Colchester-based Pozitive Energy to take on customers of CNG Energy. CNG ceased trading this month after 27 years after spiralling global gas prices.
The CNG Group's head office on Victoria Avenue.
Energy regulator Ofgem has appointed a new company to take on customers of Harrogate firm CNG Energy.
CNG ceased trading this month after 27 years and entered the regulator’s Supplier of Last Resort process.
The SoLR procedure was established as a safety net to ensure that when a company stops supplying energy, affected customers are guaranteed continuity of supply through other companies.
Ofgem has now appointed Pozitive Energy, which is based in Colchester, to supply energy to 41,000 customers of both CNG Energy and CNG Electricity.
In a statement on Pozitive Energy’s website, it said:
“We’ve reached out to all current CNG customers by post and email to let them know we are taking over their supply and what to expect over the next four weeks. We’ve confirmed current rates and how to secure more competitive rates with Pozitive Energy.”
Read more:
- All 145 CNG energy staff in Harrogate set to lose jobs
- In Depth: Why Harrogate success story CNG ended in collapse
- Harrogate energy firm CNG ceases trading
Meanwhile, Neil Lawrence, Ofgem’s director of retail, said:
“We understand that this news may be unsettling for customers, however they do not need to worry.
“Their energy supply will continue as normal, and domestic customer credit balances as well as some non-domestic credit balances, will be honoured.”
Downfall of CNG
The move follows the demise of Harrogate company CNG, which told its employees about the SoLR process in an email on November 3.
However, the company’s troubles became apparent in October when Paul Stanley, managing director of CNG, sent a letter to customers saying it was exiting the wholesale market.
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.
About 145 jobs have been lost and staff have been told that wages for days worked this month are not guaranteed to be paid.
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