East Midlands jobs and name disappear in PowerGen revamp

POWERGEN has embarked on a major overhaul of East Midlands Electricity, the regional supply company it bought last year, which is expected to result in several hundred job losses and the disappearance of the East Midlands name.

The distribution arm of East Midlands, which operates the local network of wires, is being slimmed down from 23 separate sites into one central headquarters and five regional centres.

PowerGen did not say how many job losses were likely. Analysts estimate that the headcount could be reduced by 300, or 10 per cent of the workforce.

There will be a major rebranding exercise to replace the East Midlands name with PowerGen's brand, involving repainting vans and reprinting bills and stationery.

News of the overhaul came as PowerGen said that the sale of its two coal- fired stations, Fiddler's Ferry and Ferrybridge, would reduce profits by pounds 60m a year.

The reduction will be offset exactly by lower gas costs after the renegotiation of supply contracts for its Connor's Quay gas-fired plant in North Wales.

PowerGen shares slipped by 2.5 per cent to 867.5p as the group said that the mild weather and lower power station payments helped reduce profits in the nine months to 3 January from pounds 376m to pounds 292m. This was despite an pounds 87m contribution from East Midlands. In December alone the reduction in generating profits was pounds 40m, and in January and February the impact was about pounds 20m a month.

The mild weather has reduced demand, creating a high level of plant availability and reducing the size of the capacity payments generators earn.

Fiddler's Ferry and Ferrybridge made operating profits of pounds 143m in the financial year to last April, and PowerGen expects the sale of the stations to raise between pounds 1bn and pounds 1.5bn. The sale will reduce PowerGen's share of the generating market to 14 per cent.

Ed Wallis, chairman, said the group aimed to increase its overseas generating portfolio from 8,000 megawatts to 10,000 megawatts, and is interested in buying existing power stations in Australia, Thailand, India and China.

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer with T-SQL, Watford, Hertfordshire - £350 - £360

£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...

Chief Financial Officer

120-150k: Accountancy Action: We are looking for an experienced CFO from a min...

IT Systems Business Analyst - Watford - £28k + bonus + benefits

£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...

Day In a Page

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker
Renée Zellweger's real crime has been to age in an industry that prizes women's youth over humanity

'Renée Zellweger's real crime was to age'

The actress's altered appearance raised eyebrows at Elle's Women in Hollywood awards on Monday
From Cinderella to The Jungle Book, Disney plans live-action remakes of animated classics

Disney plans live-action remakes of animated classics

From Cinderella to The Jungle Book, Patrick Grafton-Green wonders if they can ever recapture the old magic
Thousands of teenagers to visit battlefields of the First World War in new Government scheme

Pupils to visit First World War battlefields

A new Government scheme aims to bring the the horrors of the conflict to life over the next five years
The 10 best smartphone accessories

Make the most of your mobile: 10 best smartphone accessories

Try these add-ons for everything from secret charging to making sure you never lose your keys again
Mario Balotelli substituted at half-time against Real Madrid: Was this shirt swapping the real reason?

Liverpool v Real Madrid

Mario Balotelli substituted at half-time. Was shirt swapping the real reason?
West Indies tour of India: Hurricane set to sweep Windies into the shadows

Hurricane set to sweep Windies into the shadows

Decision to pull out of India tour leaves the WICB fighting for its existence with an off-field storm building
Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?