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NPower Closing 15 Sites

Thursday, August 15, 2013

GMB Seek Clarity From NPower On Impact On Staff Of Reducing From 26 Sites To Around 10 Over Next Five Years

GMB seek assurances that any job losses will be mitigated and that there will be no compulsory redundancies and that NPower will redeploy any employees impacted

GMB, the union for staff in the energy sector, responded to the statement from RWE NPower that it has 26 current sites across the UK and it is envisaged these will be consolidated to around ten over the next five years. See notes to editors for RWE NPower statement.

Colin Smith, GMB Senior Regional Officer, said “GMB is looking to assess the implications for GMB members of this announcement. We are seeking further clarity from NPower as to what this will mean for jobs and redeployments. We do not know how many jobs are likely to be affected.

GMB will be looking for assurances that any job losses will be mitigated and that there will be no compulsory redundancies and that NPower will redeploy any employees who will be impacted by closures of these sites”

End

Contact Colin Smith GMB regional officer in North East 07870 176 723 or Stuart Harrison in West Midlands 07957 266 840 

Notes to editors

Statement by Npower 14 AUGUST 2013

 RWE npower focus on cost reduction and improved customer service

Half-year results down 3% compared to previous year

Review of business operations and personnel underway to reduce costs and improve customer service

RWE AG has today announced its financial performance for the first half of 2013. The full results can be found here. In the UK, RWE npower’s retail business1 operating result was £176 million. This is down 3% on 2012 performance over the same period, with domestic supply down by 12%.

This is mainly due to the cost of delivering government energy efficiency schemes and increased network charges, as well as the cost of implementing new simplified tariffs for domestic customers.

However, prolonged colder weather earlier in the year increased gas sales into the second quarter, and further efficiency improvements across the business also offset some of the increased regulatory and network costs.

Following a £200m investment, RWE npower has now completed the upgrade of its customer services platform. Since January, when RWE npower announced its aim to be number one for customer experience by 2015, it has been undertaking a major review of its sites, business operations and personnel.

RWE npower currently has 26 sites across the UK and it is envisaged these will be consolidated to around ten over the next five years. This consolidation programme would significantly reduce costs and allow RWE npower to bring teams together, enabling quicker and more effective decision making.

RWE npower has also started reducing management layers across the business, bringing all employees into closer contact with customers and has been undertaking end-to-end reviews of customer processes to improve performance and satisfaction.

As part of this ongoing review, RWE npower is also in discussions with external partners, to explore whether other elements of its business could be better managed to help reduce costs and increase customer experience externally.

1 Since 1 January 2013, RWE npower has been a standalone retail business. RWE’s generation fleet in the UK has been consolidated into a pan-European power organisation, RWE Generation.

1 EMBARGOED UNTIL 16:00, 14 AUGUST 2013 2

Paul Massara, CEO of RWE npower comments, “As the Energy and Climate Change Select Committee recently highlighted, it is vital that all the costs which make up energy bills are kept as low as possible. Even though we only influence less than 20% of the total bill, we’re determined to help our customers by keeping our costs as low as possible.

“To do this we need to make some major changes and, although some of these will be difficult, I believe it’s the right thing for both our customers and our business. Changing our structure will help us to serve customers better – and reducing our costs will help them at a time when external factors are pushing prices upwards.

“As part of our ongoing commitment to maintain open dialogue with our people, and where people are affected, we will continue to consult with them and their representatives first and avoid compulsory redundancies, wherever possible.”

(ENDS)

Note to Editors:

RWE is one of Europe’s five leading electricity and gas companies. It is active in the generation, trading, transmission and supply of electricity and gas. More than 70,000 employees supply over 16 million customers with electricity and approximately 8 million customers with gas. In fiscal 2009, RWE recorded around €48 billion in revenue. You can follow us on Facebook or visit our Youtube channel. RWE npower is a leading UK energy company and is part of the RWE Group, one of Europe’s leading electricity and gas companies. We serve around 6.5 million residential and business customers with electricity, gas and energy. Through RWE Generation, we operate and manage a flexible portfolio of coal, oil, biomass and gas-fired power stations, producing more than 10% of the electricity used in Great Britain..
 

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