Energy giant Npower has revealed plans for the overhaul of its UK business following a takeover by the German energy giant E.ON, which could possibly cost nearly 4,500 jobs, majority of which are call centre and office positions.
The news has been described as a 'body blow', coming just a few weeks before Christmas, with Npower defending the decision, with the Chief Executive of E.ON, Npower's Owner, Johannes Teyssen, has said, "The UK market is currently particularly challenging. We've emphasised repeatedly that we'll take all necessary action to return our business there to consistent profitability. For this purpose, we've put together proposals and already begun discussing them with British unions."
A spokesperson for GMB claimed that the announcement will be devastating to Npower workers across the UK, adding that the government needs to urgently wake up to the impact that the price cap is actually having on good and reasonably well-paid jobs throughout UK energy companies. He said, "Npower is a poorly managed company with significant losses in the UK but its always the workers that face the brunt of poor management coupled with regulation that sends work overseas whilst sacking energy workers in the UK."
E.ON are said to be stepping up their 'ambitious cost-cutting efforts', all without losing sight of their customers, adding that "This is based on leaner, increasingly digital processes that also improve the customer experience." An E.ON spokesman commented that "It is only right and fair that colleagues are informed first of any possible changes and we will be making no further comment at this time."
Dave Prentis, the Unison general secretary, has said, "This is a cruel blow for Npower employees. They've been worried about their jobs for months. Now their worst fears have been realised, less than a month before Christmas. The UK energy market is in real danger of collapse. If nothing is done, there could soon be other casualties. Npower's demise means there is no time to waste. It makes the powerful case for bringing the retail arms of the Big Six energy firms into public ownership."
This plan looks to hit on a few key sections, such as: