Power sector faces upheaval in store for power
Wednesday 22 February 1995
The two privatised utilities have been looking for a way out of the cut- throat sector for some time. Nigel Rudd, the new chairman of East Midlands Electricity, said the retailing division was the next candidate for rationalisation.
Candidates to buy the chain include Dixons, Kingfisher, or a management group which purchased the retail operations of London Electricity in 1993.
That deal was led by Clive Vlotman, London Electricty's head of retail operations, who paid £6m for 66 of London's Powerhouse stores. Homepower has 124 outlets of which 10 are out-of-town superstores. The chain made a loss of £2.8m last year on sales of £100m. In 1993 losses reached nearly £10m.
More rationalisation in the sector is expected in the next few weeks with a store closure programme at Powerhouse, the joint venture between three electricity companies, Eastern, Southern and Midlands.
Tony Shiret, stores analyst at brokers BZW, said: "All the electricity companies wanted to get through Christmas to get the maximum receipts, but now the tough decisions are being made."
The withdrawal from the market by some of the utilities follows complaints by Dixons last month that the electricity companies were subsidising their retail operations by up to £250m a year between them.
"The regional electricity companies are making no profits or minus profits," Stanley Kalms, Dixons chairman, said.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 2 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 4 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 5 Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...