Harrogate and Knaresborough Lib Dems call for government to step in on energy bills

Harrogate and Knaresborough Liberal Democrats have called for the government to cancel plans for a hike in the average household energy bill from April.

The call comes as the energy price cap is set to reduce from £4,279 to £3,280, but bills are still expected to rise by £500 to an average of £3,000 a year.

The government’s own energy price guarantee is expected to be less generous and a £400 winter discount is set to end.

Local Lib Dems have called on ministers to step in and offer a new support package for businesses, leisure centres, schools and hospitals across Harrogate and Knaresborough.

Tom Gordon, the Liberal Democrat prospective parliamentary candidate for Harrogate and Knaresborough, said:

“The Conservatives’ plan to hike energy bills in April will come as a hammer blow to families in Harrogate and Knaresborough already struggling with soaring mortgages and rents, shopping bills and tax rises.

“With no plan to deal with this cost of living crisis for people or businesses, this chaotic, out-of-touch Government is instead making it much worse because they just don’t get it.

“People need real support and that’s what the Liberal Democrats are calling for. Sadly, to add insult to injury Rishi Sunak is happy for energy bosses to rake in millions of pounds in bonanza bonuses, while families struggle to put food on the table or heat their homes.”

The Lib Dems claim its plans would mean that in Harrogate and Knaresborough the average household would be £522.94 better off and would be funded by raising the rate of the windfall tax on the profits of oil and gas firms from 35% to 40%.

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Chancellor Jeremy Hunt told the BBC this month that he believed the government did not have the “headroom to make a major new initiative to help people”.

Speaking after the latest setting of the energy price cap, Jonathan Brearley, chief executive of Ofgem, said:

“Although wholesale prices have fallen, the price cap has not yet fallen below the planned level of the energy price guarantee. 

“This means, that on current policy, bills will rise again in April. I know that, for many households this news will be deeply concerning.”

The Stray Ferret approached Conservative MP for Harrogate and Knaresborough, Andrew Jones, for comment.

Zero Carbon Harrogate receives £125,000 to make buildings more energy efficient

Environmental charity Zero Carbon Harrogate has received a grant of £125,422 to make buildings more energy efficient.

The organisation, which promotes a low carbon sustainable economy in the Harrogate district, was awarded the funding this week from energy regulator Ofgem‘s energy redress scheme.

The scheme, which collects money volunteered by energy companies who may have breached Ofgem rules, has awarded over £34 million to nearly 200 organisations since 2018.

In this latest funding round, Ofgem said it focused on projects that would relieve the ongoing energy crisis, choosing “new initiatives that support vulnerable households with energy bills and projects that will help homes reduce their long-term household carbon emissions”.

Zero Carbon Harrogate’s award will go towards its retrofit training and engagement programme, which aims to reduce the climate impact from domestic energy use in the Harrogate district by accelerating the delivery of local retrofit services.

It will improve the accessibility of energy efficiency and renewable energy services for local households by addressing issues with both supply and demand for retrofit services.

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In a statement on Twitter, Zero Carbon Harrogate said:

“We are absolutely delighted to secure this funding and we’re really excited to deliver our retrofit project to the Harrogate district.”

How retrofitting helps buildings 

Zero Carbon Harrogate has previously run a retrofit awareness event in collaboration with Harrogate College and subsidised the college’s Foundations of Eco-Retrofit course.

Buildings make up 17% of UK emissions, and retrofitting homes by adding insulation, reducing draughts, and installing heat pumps can reduce energy consumption by up to 80%.

Graham Ayling, senior project manager for the energy redress scheme, said:

“The latest round of grant funding comes at a crucial time, with UK households facing exceptional rises in energy costs, alongside the ongoing climate emergency.

“National and regional charities have a key role on the frontline, particularly in supporting those most at risk from high energy prices and in ensuring that the transition to zero carbon energy happens quickly, sustainably and leaves no-one behind. These funds will support more charities to do just that.”

No.11: Harrogate energy firm CNG goes out of business

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

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.”

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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.

Ofgem appoints company to take on CNG customers

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.”

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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.

 

Harrogate energy firm CNG ceases trading

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.”

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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.