ENERGY firm E.On is to axe 500 jobs in the UK blaming the forthcoming energy price cap for the need to cut costs.
The cuts are being made in anticipation of a squeeze on prices when the cap comes in later in the year.
E.on, which employs about 9.400 people across the country, said it is not currently possible to say how many workers at individual sites or specific business areas will be affected by the proposals.
The energy provider said that the cuts are part of the firm’s ongoing efforts to “transform how it operates” and “improve efficiency”.
Michael Lewis, chief executive of E.on in the UK, said: “Clearly there are numerous challenges across the energy market and we’re dealing with all of them, not least the forthcoming price cap.
“We’ve undertaken a rigorous review of our options to ensure we keep costs as low as possible, become a more agile organisation and remain a sustainable business in the UK.
“In discussion with trade unions we’ve identified potential reductions of around 500 roles across the UK and we’re committed to achieving these reductions on a voluntary basis wherever possible.”
E.on is to cut around 500 jobs across its UK operations
Mr Lewis added that the cutbacks are part of the energy supplier’s £100 million cost-cutting programme.
The new energy price cap – which will save customers £100 each – has been given the go-ahead by MPs in July and should be in place before the end of the year.
Energy firms also automatically roll customers on cheaper fixed tariffs onto these expensive tariffs when their deals come to an end.
In June, E.on announced it will push up bills by up to £55 a year affecting 1.8 million customers.
The increase, which will affect bills after August 16, is the second one in 2018 to hit customers of the gas and electricity firm.
It follows rises from other firms, including EDF Energy which announced a £16 a year increase in June.
SSE is increased costs by up to £76 a year from July 11. While 4.1million British Gas customers were hit with a rate rise in May – adding £60 a year to bills.