CNG and Ofgem's bid to reassure Harrogate customers hit by the collapse of energy firm

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After the well-known Harrogate firm said it was closing due to "extremely high" wholesale energy prices, the Office of Gas and Electricity Markets (Ofgem) said it was working closely with government and industry to make sure customers continued to be protected this winter.

And the government regulator for the electricity and downstream natural gas market is advising business customers to wait until the new supplier had made contact with them before they looked to switch energy supplies.

The advice was confirmed on CNG's website which includes a statement to customers.

The statement says:

"After 27 years we are saddened to say CNG Energy Limited is ceasing to trade.

"Ofgem the energy regulator, is appointing a new supplier for CNG customers. Please see statement provided by Ofgem below.

Customers need not worry, their supplies are secure and funds that domestic customers have paid into their accounts will be protected if they are in credit.

"Ofgem’s advice is not to switch, but to wait until they appoint a new supplier for you.

"This will help make sure that the process of handing customers over to a new supplier, and honouring domestic customers’ credit balances, is as hassle free as possible for customers.

"Support and advice is available on the Ofgem website for both domestic customers and non-domestic customers.

"Alternatively, if customers need additional support in England and Wales, they can call Citizens Advice on 0808 223 1133 or email them via their webform.

"In Scotland, they can contact Advice Direct Scotland on 0808 196 8660 or email them via their webform.

"Advice will also be shared on Ofgem’s twitter @ofgem and facebook channels."

CNG Energy is the19th energy supplier to go out of business since the start of September.

The Harrogate company's chief executive Paul Stanley said it was "tragic" that the firm was closing after 27 years of trading.

"The global energy crisis and extremely high wholesale energy costs have affected many suppliers already and unfortunately CNG is the next casualty," he said.

"We have tried and exhausted all options to remain in business."

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."

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