E.ON announced restructuring of its inherited npower retail energy business in the U.K., including the potential sale of the large C&I retail energy business

“The U.K. market is currently particularly challenging. We’ve 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,” E.ON CEO Johannes Teyssen said explained.

The proposals include that npower’s residential and small and medium-size enterprise customers will be served by E.ON UK IT on a shared IT platform.

npower’s industrial and commercial customers will continue to be served separately. Teyssen said that E.ON will "explore all options" for the large C&I business

npower’s remaining operations will be restructured over the next two years. "These measures will make it possible to leverage considerable advantages, primarily in IT infrastructure and customer service," the company said

"E.ON UK is also stepping up its ambitious cost-cutting efforts without losing sight of its customers. This is based on leaner, increasingly digital processes that also improve the customer experience. This year, E.ON UK defended its market position with innovative and attractive products. Since the middle of the year, E.ON UK has been supplying only green electricity and has since stabilized its customer base. These restructuring measures will involve an expense of £500 million. Taken together, E.ON expects its combined U.K. business to deliver at least £100 million in EBIT from 2022 onward and thus to generate positive free cash flow," the company said

Union UNISON said that the npower restructuring will result in 4,500 job cuts

Tags:
U.K.   M&A   E.ON  

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