Npower confirms 2,400 job cuts as part of 'radical restructuring'

UK energy firm Npower has confirmed plans to cut 2,400 jobs after a year when billing issues led to the loss of 350,000 customers and a financial loss of €137m (£106m).

German parent RWE said there would be a "radical restructuring" at Npower with the aim of stabilising margins and raise the company’s competitive position.

RWE blamed Npower's losses on "serious process and system-related problems in customer billing".

It added: "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.

"In addition, there is an increasing trend towards saving energy, which also hit us harder than expected."

-- More to follow --