Relocating businesses is a common sight with some upscaling and others downsizing.

But, for one Harrogate district firm, moving the company which has been based in the same place for half a century to the other side of the A1(M) is a once in a generation decision.

Northern Energy has operated from its headquarters in Hampsthwaite for 70 years.

It was founded by Ralph Robinson in 1932 when it supplied milk and coal before moving to its current base in the 1950s where the company stared to distribute agricultural and commercial oil.

These days, the firm has ambitions to shift into the renewable gas trade.

However, to do that it needed a bigger base.

‘Once in a generational spend’

James Illingworth, Ralph’s great-grandson and director of sales at Northern Energy, said they identified Marton-cum-Grafton as its new home some three years ago.

For him, he describes the project to relocate as a decision made only once in a generation.

He said:

“This is a once in a generational spend, if you want to put it that way.

“We have been at our current site for 70 years. This is gearing up for the next 50 years really. I’m fourth generation.

“We want to keep it as a family business and it’s one of those big spends that we’ve got to make for the future.”

Work being carried out on the new Northern Energy site.

The new headquarters will be based off Limebar Lane on the A168 and is 15 miles from the current home.

The company bought the land from WA Pick and Sons farm and started work on phase one at the start of June.

As part of the plans, 10,000 square feet of office space, a vehicle depot, LPG and oil storage tanks and a new car park will be built.

Mr Illingworth said much of the driving force behind moving the family-firm was the need for space in order to grow the company in the coming years.

“The site that we are currently at [in Hampsthwaite], we have been there since the 50s. We have basically run out of space and it is not fit for purpose anymore.

“The gas storage is what we really need to take our business to the next level and we can’t put it there. That was the main driver for moving sites.”

Read more:

• Northern Energy begins work on new Harrogate district headquarters
• Council approves Northern Energy plan to move from Hampsthwaite

The new site will be accessed via the A168, which runs parallel to the A1(M) near Boroughbridge.

Part of the reason for choosing the Limebar Lane site was to take advantage of the motorway system, says Mr Illingworth.

“The great thing about this new location is the access to the motorway, which will give us connectivity down to the refinery a lot better.

“It will reduce our journey times, which will mean we will get an extra shift in and extra load in from the refinery per day.

“It might not seem a lot, but we lose a lot of time going through Harrogate every day on Wetherby Road and Skipton Road. That time that we save will be really important from a logistics point of view.”

Completion of the first phase, which includes the 400,000 litres of gas storage and loading bays, is earmarked for completion in March 2024.

From there, the company hopes to construct the staff offices and begin trading more in renewable gas.

For Mr Illingworth, the site is the next step for Northern Energy in its evolution as a company.

“The site generally is more suited to the size of our business and for future growth.”

Every month the Stray Ferret tries to find out what our local MPs have been up to in their constituencies and in the House of Commons.

In August, Parliament was not sitting as it was in recess over the summer. Nonetheless, Conservative MPs faced questions over what the government was doing to tackle the cost of living crisis and allegations that they voted voted in favour of pumping raw sewage into rivers and the sea.

We asked our three Conservative MPs, Harrogate & Knaresborough’s Andrew Jones, Skipton and Ripon’s Julian Smith, and Selby and Ainsty’s Nigel Adams if they would like to highlight anything in particular that they have been doing this month, but, as usual, we did not receive a response from any of them.

Here is what we know after analysing their online presence.

Andrew Jones, MP for Harrogate and Knaresborough.

Andrew Jones

In Harrogate and Knaresborough, here is what we found out on Mr Jones:

• On August 3, Andrew Jones welcomed the Treasury’s response to his letter which ensured people connected to LPG gas bottles would get government support with their energy bills.
• Mr Jones strongly criticised claims that he voted to allow the pumping of sewage into rivers and the sea. He said the claims were “simply a lie”.
• Mr Jones called on people to get involved with the “national mission” to beat dementia by signing up to Join Dementia Research.
• The former Rail Minister told Transport for the North that investing in public transport was “going to be a main part of how we recover from the economic problems caused by the pandemic and inflation,” as well as reducing carbon emissions.
• Mr Jones also backed York to be the headquarters of the new government rail body Great British Railways.
• On August 31, he held an advice surgery in Knaresborough market.

Read more

• MPs watch: PM resignation and a leadership contest
• MPs watch: Vote of no confidence and overriding the Brexit deal

Julian Smith, MP for Ripon and Skipton.

Julian Smith

In Skipton and Ripon, here is what we found on Mr Smith:

• On August 5, Mr Smith welcomed the £11,000 awarded by Historic England to the Ripon Museums Trust to investigate the lives of disabled people in the city’s workhouse.
• Mr Smith regularly tweeted his support for Rishi Sunak in the Conservatives’ leadership election, which ends on September 5.
• Mr Smith held meetings with small business owners in his constituency. He tweeted that it was “clear urgent intervention is also required” for small businesses as well as households.
• On August 1, Mr Smith welcomed the devolution deal signed by North Yorkshire County Council, the City of York Council and the government, as well as Richard Flinton’s appointment as the chief executive of the new North Yorkshire Council.
• Mr Smith tweeted that “the new UK PM & the EU need to listen and step up” over work to secure a deal on Brexit-related issues in Northern Ireland.

Nigel Adams, MP for Selby and Ainsty which includes rural Harrogate.

Nigel Adams

In rural south Harrogate, here is what we found on Mr Adams:

• On August 1, Mr Adams said he was “delighted” by the new devolution deal.
• Mr Adams posted on his website about the consultation to upgrade the A64 near York, on the main route between Harrogate and the North Yorkshire coast.
• Mr Adams also hit back at claims that he had allowed the pumping of sewage into waterways. He tweeted that the “fake news brigade and their gullible followers aren’t interested in facts” relating to the UK’s sewage system.
• It was reported that Mr Adams could be in line for a peerage in Prime Minister Boris Johnson’s list of resignation honours. Such a move would trigger a by-election in his constituency. Mr Adams previously confirmed that he would stand down at the next election.

Ainsty Farm Shop is to close next month after its owners were told their annual energy bill was set to jump from £20,000 to £90,000 a year.

Farmers Lily and Stuart Beaton have run the popular store for 22 years and have been in their current premises off the A59 near Kirk Hammerton since 2005. The shop sells meat from their farm as well as other produce grown locally.

The couple’s annual energy bill is due to renew next month and they received a new quote last week that was so shocking they didn’t think it was real.

Ms Beaton said:

“I said they’ve sent the wrong quote, this can’t be right. Are you sure they sent the right quote?”

Massive price hike

They contacted an energy broker, who managed to get the quote down to £76,000, but it was still far more than they are able to afford.

It led to the heartbreaking decision to close the farm shop, which has turned their lives “upside down”.

Ms Beaton added:

“We just don’t have that extra £50,000, it’s not the type of money that sits spare.

“If we were to try and put an increase on prices and charge customers more, that wouldn’t be fair, it would exclude a lot of customers. We’d just price ourselves out of the market.”

Read more:

• Harrogate council could dip into reserves to cover soaring energy costs

• Help for Ripon residents confused about energy rebates

The cost of living crisis is now being felt by just about everyone, with wholesale energy prices soaring due to the war in Ukraine as well as high demand post-covid.

But for owners of small businesses like Ainsty Farm Shop, it can sting seeing oil companies like Shell and BP post record profits whilst they are forced to close their doors.

Ms Beaton said:

“It’s just phenomenal the record profits they are announcing for these businesses, yet everybody else underneath them is going out of business because they can’t sustain the rises. That’s where the problem lies, that’s what needs sorting out.”

‘Tip of the iceberg’

She believes the closure of their business is the “tip of the iceberg” and fears for how the food and retail landscape could eventually look.

The couple hope their plight acts as a warning to show that small businesses need more help if they are going to weather the current crisis and come out the other side. Ms Beaton said:

“It will be a very sad day when there are only supermarkets and no independents. It’s what will happen unless something is done now, but it’s been too late for our shop”.

Since announcing their closure over the weekend they have been heartened by the messages of support and goodwill from customers.

After September, they will continue to sell meat and produce from their farm via their online shop.

“Some of the customers came through the doors when we opened our first shop. They are very loyal, lovely customers. It’s heartbreaking to think these people you see weekly you won’t see them again.

“Its been a long time, our kids have been born since we’ve had the shop, they’ve worked here too during school holidays. It’s just all going to end which feels very strange.”

To sign up to the Ainsty Farm Shop mailing list for updates on how to still buy meat from them after they close, email sales@ainstyfarmshop.co.uk or call 01423 331897

Harrogate energy company CNG became the victim of a global phenomenon this year when it ceased trading after 27 years.

Wholesale energy prices spiralled this year, and the impact was dramatic, with CNG one of more than 20 UK companies exiting the market.

Paul Stanley, chief executive of CNG, told the Stray Ferret the company failed because four of its main customers went out of business within two weeks, leaving it with unpaid bills.

Attempts to raise capital or sell the business were unsuccessful due to continued market volatility and high prices in the energy sector.

The company supplied about 15 to 20 retail energy companies through its wholesale business arm and also has around 50,000 business customers. About 150 jobs were lost.

CNG’s headquarters on Victoria Avenue

Swift collapse

Despite being regarded as a local success story for the majority of its 27 years, CNG’s collapse was swift and unforgiving.

Alarm bells began to ring on October 14 when Mr Stanley sent a letter to customers saying it was exiting the wholesale market. Two weeks later the company entered liquidation.

With Christmas approaching, it couldn’t have come at a worse time for staff.

A series of meetings were held between company bosses and worried employees, who had questions about redundancy pay.

Staff have been paid for November but were not expected to be offered a redundancy settlement until after Christmas through a government scheme.

A source told the Stray Ferret it was a “stressful time to have no income.”

Read more:

• In Depth: Why Harrogate success story CNG ended in collapse
• Harrogate energy firm CNG ceases trading

Administrators

CNG then entered the Supplier of Last Resort process operated by the government’s 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.

However, businesses that were supplied gas by CNG were warned that their energy bills will be expected to rise.

Interpath Advisory has now been appointed as administrator, and around 30 staff are working to close the company.

CNG was also synonymous with Harrogate Town football club, becoming the first-ever sponsor of their Wetherby Road ground from 2008 until 2020 when it was rebranded the CNG Stadium.

The company was also well-known in Harrogate as a supporter of local charities and community projects.

Jennyfields residents still waiting for £60 gas compensation payments have been told they will be issued automatically.

About 3,500 homes in Jennyfields were without gas for 48 hours after a major gas leak on Ripon Road in October.

Northern Gas Networks, which distributes gas to homes and businesses in Yorkshire, the North East and northern Cumbria, automatically issues £60 compensation payments through customers’ gas suppliers for loss of supply for more than 24 hours.

But six weeks after the leak, which the company said affected more people than any other incident it had dealt with in the last 18 months, some people have yet to be paid.

Eileen Brown, customer experience director for Northern Gas Networks, told the Stray Ferret some payments had been delayed because gas suppliers had gone out of business.

Ms Brown said Northern Gas Networks would process the payments when it was notified of the new suppliers. She added if it made the payments before then they could be delayed even longer because they would get tied up in lengthy administration processes.

Read more:

• What caused Harrogate’s huge gas leak?
• Mum’s shock at finding blood after Jennyfields attack

She pledged all 3,500 homes would be fully compensated automatically and asked residents not to call Northern Gas Networks requesting payments.

“Payments will be coming to them. They don’t have to do anything for it.”

Asked how long people could expect to wait, Ms Brown said it was likely to be weeks rather than months but added the timings were “beyond our control” because of the need to wait until customers were transferred to new suppliers.

Some customers on the priority services register are also entitled to £48 compensation payments for the provision of alternative heating. Again, Ms Brown pledged they would be made.

‘1 in 43 years occurrence’

The leak occurred when sub-contractors damaged a pipe during deep excavation work about three metres below the surface of Ripon Road, near the Hydro.

Northern Gas Networks converted the Styan Community Centre in Jennyfields into an emergency hub to respond to the incident.

A total of 355 Northern Gas Networks engineers and volunteers helped that weekend, aided by 30 voluntary organisations. The company gave away 800 electric heaters, “slightly fewer” electric hobs, 50 oil filled radiators and 1,500 food vouchers worth £10 each.

The company’s response was widely praised by people in the area.

Ms Brown said the loss of gas supply happened on average once every 43 years and most customers would not experience this again in their lifetimes.

Asked how much the incident had cost Northern Gas Networks, she said she was unable to say but added:

“We do the right thing for customers. The cost is the cost. It’s about being there for customers.”

Staff at the collapsed Harrogate energy firm CNG Group are expected to be formally made redundant on Friday.

A meeting was held this morning between around 100 staff members, CNG management and Interpath, the financial advisory company that is expected to be appointed as administrators tomorrow.

CNG’s chief executive Paul Stanley told the Stray Ferret that the majority of staff will be made redundant once Interpath is appointed.

Around 40 people will continue working to help wind the company down, a process that is expected to take several weeks.

An anonymous source at the meeting told the Stray Ferret that “everyone is very sad” about the end of the company.

Staff have been paid for November but are not expected to be offered a redundancy settlement until after Christmas through a government scheme. The source said it was a “stressful time to have no income.”

Read more:

• CNG employees in ‘horrible situation’ regarding redundancy payouts
• Ofgem appoints company to take on CNG customers
• In Depth: Why Harrogate success story CNG ended in collapse

Mr Stanley, CNG’s CEO, said the company has had regular online meetings with staff since September 14 to discuss the future of the company.

He said:

“At each session, we have had extensive Q&A following the initial presentation.

“As we have been discussing the situation with colleagues since September, many people have thankfully already found new roles, and were eager to understand what the next stage would be and when they might be able to move on.

“We provided this information today so that colleagues can start to make plans and many of them had asked for clarity on when they might be released.

“Colleagues have also been advised about the redundancy process and the likely timescales for payment being made through the redundancy process. As you can imagine, we are all incredibly sad that this has happened to a business that has played such a significant part in the Harrogate community for so many years.”

For the majority of its 27 years, CNG was regarded as a Harrogate success story.

Mr Stanley said the reason CNG failed was that four of its main customers went out of business within two weeks, leaving it with unpaid bills.

Attempts to raise capital or sell the business were not successful due to continued market volatility and high prices in the energy sector.

A sentence on CNG‘s website on Wednesday afternoon spelled the end of a company that for the majority of its 27 years was regarded as a Harrogate success story.

CNG had two business arms, supplying wholesale gas to around 20 energy providers as well gas to 41,000 small and medium-sized businesses, including several in the district.

But spiraling wholesale gas prices over the past few months meant CNG’s collapse was swift and unforgiving.

When was CNG founded?

CNG was founded by Colin Gaines following the deregulation of the gas industry in 1994.

The company began in a single office on the top floor of the Schlatter building on York Place but expanded to employ 145 staff with many in customer service and sales roles.

CNG president and former managing director Jacqui Hall told Insider Media in 2016 about the early days of the company:

“When we started we would knock on doors, word of mouth was critical. Lots of the staff used to work for British Gas and the clients were pubs and restaurants; independent businesses because we could make more margin.

“You could have easily built it on big contracts but if one went bust then the whole business would fall; the plan was lots of little, bigger-risk, bigger-margin clients – that was a strategic decision.”

Mr Gaines died in 2006 as did a second major shareholder within two days.

The company then had a number of partners including conglomerate Glencore, but in 2012, Ms Hall led a management buyout of the business.

CNG continued to expand and in 2014 moved from an office on Victoria Avenue into the former HM Revenue and Customs building on the other side of the road.

By 2016 it had posted revenue of £250 million — rising from £25 million in 2006.

CNG’s head office on Victoria Avenue

CNG was also synonymous with Harrogate Town football club, becoming the first-ever sponsor of their Wetherby Road ground from 2008 until 2020 when it was called the CNG Stadium.

The company was also well-known in Harrogate as a supporter of local charities and community projects. Garry Plant, Harrogate Town’s commercial director, told the Stray Ferret that the club was “deeply troubled” by their downfall.

He said:

“The club’s association with CNG was spread over many, many years and we are all deeply troubled by their demise.

“As a company they engaged in community projects across the district and they willingly gave a great deal back.

“We wish everyone at CNG the very best of fortune going forward.”

Timeline of CNG’s collapse

• October 14: Harrogate firm CNG to stop supplying energy companies
• October 29: Major Harrogate employer CNG ‘enters liquidation’
• November 2: All 145 CNG energy staff in Harrogate set to lose jobs
• November 3: Harrogate energy firm CNG ceases trading

Why CNG failed

There has been a global squeeze on energy supplies with the price of gas rising by 250% since January.

This is, in part, due to a cold winter last year and increased demand from China.

CNG’s troubles became public on October 14 when Mr Stanley sent a letter to customers saying it was exiting the wholesale market.

The Stray Ferret understands the company was in talks with the government in an effort to save the business.

But the talks were to no avail. In a statement published this week after it ceased trading, Mr Stanley said the global energy crisis meant it could not continue trading.

The company had offered fixed-term tariffs to businesses over several years, but with wholesale prices rocketing it meant it had to pay the difference, which was ultimately unsustainable.

Mr Stanley said:

“The global energy crisis and extremely high wholesale energy costs have affected many suppliers already and unfortunately CNG is the next casualty. We have tried and exhausted all options to remain in business.”

Jamie Hailstone, former news editor of specialist energy website Utility Week, told the Stray Ferret that due to the current market crisis, it was inevitable that CNG would go out of business.

He said:

What happens next

CNG has now entered the Supplier of Last Resort process operated by the government’s 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.

Administrators are expected to be appointed to wind up the company. All 145 jobs have been lost and staff have been told that wages for days worked this month are not guaranteed to be paid.

Businesses supplied by CNG also are unprotected by an £1,277 annual price cap, which is only for domestic consumers.

These business owners, including Grantham Arms landlord Simon Wade in Boroughbridge, will now be exposed to much higher gas bills.

He said last month:

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

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

David Simister, chief executive, Harrogate District Chamber of Commerce told the Stray Ferret that the collapse of one of Harrogate’s best-known businesses is a “real blow” to the town.

“I feel incredibly sad for those 145 employees who have lost their jobs.

“Over the years, CNG, became one of the best-known business names in the district. It was a great supporter of local charities and a proud sponsor of Harrogate Town Football Club.

“It is the latest victim of the surge in wholesale energy costs, and more than likely it won’t be the last. For those firms who were supplied by CNG, they will now be contacted by a new supplier and placed on a new tariff, which I’m afraid to say will be higher than their previous agreement.”

Northern Gas Networks (NGN) has once again asked Harrogate residents to reduce their use of central heating and showers following last week’s gas leak.

Engineers are on Ripon Road near the Co-op petrol station after customers reported low gas pressure in the HG1, HG2, HG3 and HG4 postcodes.

It is unclear how long the engineers will be on site working the fix the problem. In the meantime, the gas company has urged people to avoid all “non-essential use”.

NGN did not specify the cause of the low pressure and loss of service but linked it to the major gas leak which started on Friday and continued into the weekend.

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A spokesperson for Northern Gas Networks said:

“If you live or work in the area affected, we are asking once again to please temporarily minimise your use of gas while work is underway.

“By avoiding all non-essential use, people can help ensure there is enough gas in the system to go around everyone.

“That means trying not to use central heating, and avoiding taking showers if you have a combi boiler, until further notice.”

The gas company has asked anyone with boiler issues or those who need help turning gas back on to call its customer care team on 0800 040 7766 and select option three.

However if you smell gas then call the National Gas Emergency Service immediately on 0800 111 999.

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.”

Read more:

• Strong objections to Northern Energy plan to move from Hampsthwaite
• Masham’s Black Sheep Brewery signs renewable energy deal

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.