Integration leads to job losses

TXU Energy’s retail business, which was acquired by Powergen in December 2002, is to be integrated into Powergen with the loss of approximately 961 jobs.

Following EC approval in December 2002 for the acquisition of TXU’s retail business, Powergen has announced details of its integration plans.

Having completed a review of its retail business activities and locations, Powergen has decided to consolidate its business on sites in the East Midlands, where Powergen already has a major presence, and in Ipswich, Suffolk at a location yet to be agreed.

According to a statement, this will enable Powergen’s retail business to eliminate duplication and ensure that business efficiency and customer service is maintained.

There are currently 936 employees based in Ipswich, but these numbers will be reduced by 686 over the coming year. This decision also means the phased closure of three TXU retail operations at Rayleigh, Bolton and London, affecting 275 employees.

Powergen added that it will be consulting with employees and, where appropriate, employees will be encouraged to apply for positions within Powergen’s new retail structure. The company hopes that all redundancies will be achieved on a voluntary basis.

Nick Horler, managing director of Powergen retail, commented: ‘Powergen has moved quickly to provide employees with clarity as soon as possible. I know this has not been an easy time for everyone and we will, of course, offer them as much support as we can to help employees find suitable positions.

‘Powergen is now one of the UK’s leading energy companies but we will remain conscious of our commitment to the regions which have helped us achieve this.’

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