leadf
logo-loader
viewSSE PLC

Npower plans £500mln restructuring to tackle tough retail energy market

The retail energy market continues to be "particularly challenging" in the UK, said German owner E.ON

solar
Npower says it has delivered only "green energy" since mid-2019

Npower, one of the ‘big six’ energy providers, is set to spend £500mln on a new restructuring programme to tackle a tough UK market.

The company’s German owner, E.ON, which last year tried to merge the UK business with the consumer energy services business of SSE PLC (LON:SSE), said it plans to ramp up 'digitalisation' of Npower by serving home and small business on a shared IT platform, which will help cut costs likely by reducing the staff needed to run the business.

The latest cuts come after 900 jobs cuts announced in January in an attempt to save cash after the government's new price cap was implemented.

“The UK market is currently particularly challenging,” said E.ON’s chief executive, Johannes Teyssen, adding that the company has “emphasized repeatedly that we’ll take all necessary action to return our business there to consistent profitability”.

“For this purpose, we’ve put together proposals and already begun discussing them with British unions,” Teyssen explained.

E.ON said that Npower’s remaining operations will be restructured over the next two years, adding that it expects the UK business to deliver at least £100mln in underlying earnings from 2022 on.

Quick facts: SSE PLC

Price: 1175 GBX

LSE:SSE
Market: LSE
Market Cap: £12.24 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Nomad Royalty has ambitions of becoming next 'large tier mining royalty company'

Proactive Research analyst Ryan Long says Nomad Royalty Company Ltd (TSE:NSR) has a diversified portfolio of large cash flow and near-term cash flow generating mining assets. He says around 50% of its NAV currently comes from cash flow generating assets and that's expected to increase to 85% in...

41 minutes ago

2 min read