Innogy-owned UK energy supplier npower has announced it will lose as many as 900 jobs over the coming year as part of a major cost reduction programme.
A statement this afternoon confirmed that the supplier is to embark on a programme to reduce its operating costs in response to “extremely tough UK retail energy market condition”, pointing in particular to the recently-introduced price cap.
The company said the proposed cost reductions are likely to result in around 900 roles being lost – equivalent to around 15% of its workforce – but qualified this by stating that the actual number of redundancies would be “considerably lower” owing to the number of people who leave the business each year.
Npower is to consult with affected employees and unions regarding the proposals, with the first consultations due to start next month. Compulsory redundancies will be minimised as much as possible, the firm said.
Paul Coffey, chief executive at npower, described the UK retail market as “incredibly tough” and said that recent failures of suppliers – ten have ceased trading in recent months – it was clear that “many have been pricing at levels that are not sustainable”.
“Even with these reductions, we still forecast significant losses this year, but we’re doing everything we can to minimise them whilst continuing to focus on service and value for our customers,” he said.
Npower endured a rocky 2018, having for the most part expected to be merging with the supply division of Big Six rival SSE.
The proposed merger hit the skids however in November last year after more precise details surrounding Ofgem’s cap on standard variable tariffs were released, and the two parties formally pulled the plug on the deal last month.
