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npower announces cost reduction programme in the face of worsened market conditions

npower is today announcing a programme to reduce its operating costs in response to the extremely tough UK retail energy market conditions, in particular Ofgem’s price cap and intense competition on fixed price tariffs.

The proposed reductions are likely to affect around 900 roles over the course of the year out of npower’s current 6,300 workforce, although as around this number of people leave the company each year, the actual number of redundancies will be considerably lower. 

Paul Coffey, CEO of npower says, “The retail energy market is incredibly tough - Ofgem itself forecasts that five of the ‘Big Six’ energy companies will make a loss or less than normal profits this year due to the implementation of the price cap, and with several recent failures of new energy suppliers, it is 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.”

npower takes its responsibilities to its employees very seriously and will consult fully with affected employees and with unions over these proposals. The first consultations are due to start in early February and compulsory redundancies will be minimised as much as possible.

ENDS

For more information, please contact the npower press office on 0845 070 2807