Former staff at CNG Group look set to receive £43,200 in claims against the failed Harrogate firm.

CNG, which employed about 145 staff, blamed spiralling wholesale gas and electricity prices for going out of business in 2021.

Administrators Interpath Advisory has published a progress report, which was uploaded on the Companies House website this week, for the period from September 2 last year to March 1.

It said staff — classed as ordinary preferential claimants — claimed £43,200 for arrears of wages up to a maximum of £800 a week, accrued holiday pay and pension benefits.

The report by joint administrators Timothy Bateson and Christopher Pole added:

“We anticipate that ordinary preferential creditors should receive a dividend of 100p in the £.”

Administrators paid £635 an hour

The report also revealed Interpath is being paid £635 an hour for handling the administration. It said:

“We have incurred time costs of £153,269. These represent 241 hours at an average rate of £635 per hour.”

Interpath’s final fee by the time administration is due to end on March 1 next year is expected to be £298,759.

Preferential creditors are expected to be paid in full, the report said, and “it is likely that the unsecured creditors will receive a dividend” although the amount is unknown.

The timing of payments is also unclear.

The report described the company’s primary assets as “inter-company debtor balances and investments in others groups”.

These are expected to generate “significant realisations” but the administrators added:

“The flow of funds between the CNG group of companies is complex and will depend on each company within the group resolving matters which are currently preventing distributions being made to the company.”

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A member of staff at one of Harrogate’s biggest companies has told the Stray Ferret that it has gone into liquidation today.

The CNG Group, which is based on Victoria Avenue and employs about 180 staff, is one of numerous companies affected by the spiralling increase in wholesale gas prices.

According to the source, staff were today informed they have lost their jobs.

The company supplies about 15 to 20 retail energy companies through its wholesale business arm and also has around 50,000 business customers.

The Stray Ferret understands that CNG has entered into the Supplier of Last Resort (SOLR) system and the administration and liquidation process.

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The employee, who requested anonymity, told the Stray Ferret:

“The staff were told to stay on and help the company close, they said that there was £12 million in the pot for redundancy pay outs.

“Just a couple of days later and today they have said that we will only be entitled to statutory redundancy through the government.

“There will be plenty of staff in a tricky financial situation, some have told me they are unsure how they will be able to pay their bills while they wait for the money to come through.”

The Stray Ferret has approached the CNG Group for comment but had not received a reply by the time of publication.

A pub landlord in Boroughbridge has said he fears his energy costs could increase seven-fold overnight amid concerns over the future of Harrogate-based energy firm CNG Group.

The Stray Ferret reported this morning that CNG is to stop supplying gas to energy customers, amid record wholesale gas prices.

It has also been reported that there is a deadline of tomorrow for organisations to submit bids to buy CNG’s small and medium-sized enterprises arm, which directly supplies gas and electricity to more than 40,000 SMEs.

One of those is the Grantham Arms in Boroughbridge. Owner Simon Wade told the Stray Ferret the move would have a major impact on his business.

Mr Wade is three years into a five-year contract with CNG, which provides gas to heat the pub at a rate of 5p a unit.

However, if the company collapses, he has been told by his energy broker that he will be placed on an emergency tariff that could be as much as seven times higher than what he currently pays.

He said:

“I’m facing a massive hike and it’s nothing to do with us. It’s a major concern”

“We’re completely shackled and it’s put us in a bad position”.

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Mr Wade said the pub had a good reputation and has been busy since reopening after lockdown but he was concerned that sky-high energy bills would eat into his takings.

He urged businesses to check their contracts or get in touch with their energy brokers to see if they are with CNG and, if so, make contingency plans, such as moving towards renewable energy.

He added:

“If you have an old building that relies on gas it eats into your budget.

“We’re backed into a corner, but we’re small fry.

“A lot of people will suffer and it’s not any of our doing.”

The Stray Ferret asked CNG for details of its current situation but did not receive a response by the time of publication.

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.

It said:

“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.