EDF Energy has denied it is planning to cut staff, following rumours the company was considering options to reduce investment in the UK market.
An industry source told Utility Week there may be a possibility the company is seeking to cut staff numbers by an amount which needs to be disclosed to the secretary of state, following financial losses.
The source said: “It is highly likely as with many of the other large retailers struggling with profitability under the price cap, heads will need to be cut.”
A report in The Sunday Telegraph said the French-owned company is exploring a range of options, including one to merge its supplier arm with a “fast-growing start-up”.
But the big six provider has denied the rumours and said it is committed to its UK business.
An EDF spokesperson said: “EDF is more committed than ever to the UK market and to strengthening its existing retail business.”
EDF would not be the first big six supplier to reduce its head count in order to make savings, if it does cut staff.
Last August Michael Lewis, chief executive of Eon UK, confirmed that the company had identified “potential reductions” of 500 roles across the UK due to an “increasingly competitive environment”.
In March 2018, the German company Eon revealed it could cut up to 5,000 jobs as it expects to make synergies of €600 to €800 million under a major asset swap with RWE, which will see Eon acquire Innogy.
Meanwhile in February last year British Gas owner Centrica announced the loss of 4,000 jobs in the face of stiff competition and the energy price cap.
In 2016 Npower said it would make “extensive cost savings”, including cutting 2,400 jobs, following a £99 million loss in the previous year, compared with a profit of £183 million in 2014.
Npower, which is owned by Innogy was expected to merge with SSE retail’s arm, but the deal was called off towards the end of last year.
“Adverse developments” in the retail market and “regulatory interventions” such as the price cap were cited as reasons behind the decision.
SSE said its board is exploring “other options” for SSE Energy Services after the company’s proposed merger with Npower was scrapped.
Innogy is also “assessing the different options” for its British retail business.
Recent Comments