Npower to cut jobs in the UK as it restructures

Under the plans, E.On is planning to merge IT systems to save cash. It added the restricting was necessary to address npower’s “critical and unsustainable business situation which has persisted for a number of years”.

The restructuring plan - which E.On expects will cost Npower £500m - would see small businesses and consumers served by the same computer systems and customer service teams.

Large industrial customers would still be served separately.

E.ON UK chief executive Michael Lewis said the proposals will mean “significant changes” for Npower and its employees.

“We’re aware of the impact these proposals will have and there will be appropriate levels of employee support at this time,” he said. “Npower will now consult and work with trade unions and employee representatives on all these proposals and we are committed to mitigating impact on colleagues.

“The background to these decisions is of course the unprecedented upheaval in the energy market: in the last 18 months we have seen almost one third of suppliers going bust or continuing to operate at a loss. What we’re announcing today is our response to this difficult situation in order to remain sustainable.

“I also want to reassure customers of both E.ON and Npower that they should not worry about the energy they need for their homes and businesses. Nothing changes to your account today and your energy supplies remain safe and secure in our hands. We will be in touch with all of our customers in the coming months to let them know exactly what is happening and what it means for them.”