145 jobs lost in Harrogate as CNG Energy becomes latest UK supplier to collapse as soaring gas prices hit industry

Harrogate-based CNG Energy has become the latest UK energy supplier to collapse as soaring gas prices continue to strangle the industry.

The company, which supplies around 41,000 business customers, confirmed that it will cease to trade due to “extremely high” wholesale energy prices.

CNG has confirmed that all 145 of its employees are to lose their jobs after the company fell victim to the global energy crisis.

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It means six energy suppliers have collapsed this week alone, with 19 failures since the start of September.

Library image of gas holder. Last month, CNG said that costs faced by gas suppliers have tripled since last year, so customers can expect higher bills this winter. Picture: PA

In a statement on social media, CNG Energy said: “We’re very sad to say that CNG Energy Ltd is ceasing to trade.

“CNG customers’ supply won’t be interrupted and Ofgem is moving you to a new supplier soon. This will happen automatically.

“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.”

Last month, it was confirmed that CNG had appointed advisers to consider its options during a period of soaring prices.

In September, Paul Stanley, the company's CEO, said that costs faced by gas suppliers have tripled since last year, so customers can expect higher bills this winter.

In comments emailed to the Harrogate Advertiser, Mr Stanley said: “This is a very sad time for the company and a terrible loss of a great Yorkshire business that has achieved so much over the years.

"I am proud of the staff for their continued professionalism and focus on customer service whilst dealing with this awful situation.

“CNG has a great team, and I know that the people that work at CNG in all roles will be an asset wherever they choose to work next.”

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Energy regulator Ofgem added that affected customers should wait until a new supplier has been appointed and contacted them before looking to switch suppliers.

The watchdog said it is working closely with Government and industry to make sure customers continue to be protected this winter.

Neil Lawrence, director of retail at Ofgem, said: “Ofgem’s number one priority is to protect customers.

“We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.

“I want to reassure affected customers that they do not need to worry under our safety net we’ll make sure your energy supplies continue.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime.

“You can rely on your energy supply as normal.”