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npower to cut 900 jobs

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npowernpowerSwindon-based energy provider npower has announced it will cut 900 UK jobs this year to lower its operating costs in the face of "incredibly tough" trading conditions.

The company, which based at Windmill Hill Business Park and employs 6,300 at sites across the UK, says it expects few redundancies due to natural turnover.

Energy market regulator Ofgem imposed a price cap on default energy bills from January this year following a government promise to tackle rising prices.

A planned merger of the retail energy teams of SSE and Innogy – the owner of npower – was scrapped about the firms failed to agree new commercial terms following the announcement of the cap.

“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,” said npower chief executive Paul Coffey.

"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."