Npower to sack 2,400
Npower have confirmed that they're going to be axing 2,400 jobs, after the Big Six energy firm said they had an operating loss of £106m in 2015. In that same year, the company also lost 7% of their domestic customers as well.
A lot of customers have been leaving Npower because of persistent issues with their billing services, and of course, shoddy customer service. With people more willing to switch providers now, Npower have not upped their game quickly enough, and are haemorrhaging customers.
You may remember that Npower were ordered to pay a £26m settlement by Ofgem, the energy regulator, after they'd been found to be "failing to treat customers fairly". The fine in December was the second time the energy company had been hit with one.
The company who own Npower - RWE - said that they're going to have to do a "radical restructuring" of their UK wing, with full-time staff and contractors losing their jobs.
RWE said of the operating loss at Npower: "The main reason for this is serious process and system-related problems in customer billing. Substantial earnings shortfalls also stemmed from the fact that residential and commercial customers switched providers or we were only able to retain such customers by offering them contracts with more favourable conditions".
Paul Coffey, chief executive at Npower, said: "They show a business that tried to do too much, too soon while not focusing enough on the fundamentals in a constantly changing market. This led to over complicated processes and procedures resulting in unhappy customers, too many complaints and extra costs to put things right."
"Energy should be simple for our customers and we have complicated it. Our plan is to create an Npower that delivers better service, is more attractive to customers and better prepared for future opportunities – all at lower costs".