RWE plans job cuts at UK subsidiary

Germany’s second largest utility is set to shed 2,500 jobs in the UK as it continues to cope with difficult market conditions.

The company is battling to adapt as ultra-low wholesale power prices, large exposure to coal and gas and only a small presence in renewable energy continue to diminish its profitability. Sales and marketing roles are expected to be the worst hit.
The firm has major plants in the UK including Pembroke and Aberthaw in Wales and Staythorpe in Nottinghamshire.

It’s the latest in a series of bad news stories for the company’s UK subsidiary, RWE Npower.

NPower’s power station at Didcot in Oxfordshire collapsed last month as it was being prepared for demolition, killing one worker, with three still missing.

Three months ago the firm was fined à‚£26m, the largest ever fine for a British power utility, for bungling billing and complaints handling in December.

It made a loss of à‚£48 million for the first nine months of last year.

In Britain, tougher competition has caused a loss of about 200,000 customers in the first nine months of the year, compared with 100,000 for the first half.

Npower now has 5.4 million customers in Britain, but the problem with its billing process has meant it has been effectively unable to charge some customers. It does not expect the issues to be resolved until the end of 2016.

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