The head of German energy group Innogy has left the company with ‘immediate effect’. The news comes the week after the RWE spin-off issued a profit warning that saw its share price fall steeply.
Peter Terium had been the head of RWE before taking up stewardship of the new company, which took charge of the renewable, network and retail businesses of the mother utility.
Late on Tuesday Innogy’s supervisory board issued a statement saying it “sees the necessity for greater emphasis on cost discipline and a more focused growth and investment strategy”.
Uwe Tigges, chief human resources officer, would take over as chief executive on a temporary basis, the company said.
After the profit warning announcement, blame had been attributed to Innogy’s loss-making UK household supply business Npower.
Npower is one of the six biggest electricity and gas suppliers in the UK market but like many of its larger rivals has been losing market share to newer entrants that have been using their lower cost bases to lure away customers.
Npower, which is on course to make its third annual loss in a row in 2017, had been trying to cut costs, but Innogy admitted last week that those savings would be insufficient to offset a shortfall in earnings. Innogy is seeking to exit the challenging UK market.
Werner Brandt, chairman of the supervisory board, thanked Mr Terium for his “significant contribution” to the successful restructuring of RWE and said his departure was by “friendly agreement” with the supervisory board. Mr Terium had held a number of positions at RWE since 2003 and served as chief executive of the group until April 2016, when he took on the same role at Innogy during what has been the most turbulent period for European utilities in generations.
Terium’s employment contract was due to have run until the end of March 2021.