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[22 APR 99] POWERGEN PRESS RELEASE
East Midlands Electricity To Cut Jobs

PowerGen has today announced a major restructuring of its Distribution business that will enable it to deliver a better service to customers at lower cost.

The company will:

  • Streamline the management and administration of its Distribution business at new, purpose-built premises at Pegasus business Park near junction 24 of the M1.
  • Establish a dedicated, customer-focused central incident centre at this site to provide the fastest possible response to any problems occurring with the network.
  • Restructure the business around four key activities, backed by modern technology, to improve all-round customer service: network investment; new connections; inspection and maintenance; restoration and repair.
  • Maintain a strong presence on the ground through four Field operation Centres, supported by contractors in the region. These will be located near motorways / major roads for improved service and response:
  • Huthwaite / Eastwood (M1 J27/28)
  • Northampton / Wellingborough (A45)
  • Sleaford (A15 / A17 intersection)
  • Ansty (M6 / M69)

Currently, the distribution business consists of six regional businesses based at Coventry, Derby, Leicester, Lincoln, Northampton and Nottingham. Although this arrangement has functioned adequately for a number of years, it has the disadvantage of creating significant duplication of activity and variable service quality.

Moving our employees from city centres to locations convenient to major motorway and road networks will improve our coverage and ability to respond to customer needs. We will also be able to manage the business more efficiently, while delivering customer service of a consistently high standard across the region in a more flexible and responsive manner.

The changes will mean a reduction in staff numbers as we restructure the business to compete in the modern environment and deliver value to our customers. The reorganisation will take place over the next two years and will be phased to provide a seamless transition to the new structure.

Employees have been told today about the restructuring and there will now be a formal period of consultation with employees and trade unions. Reductions will be achieved by voluntary severance and natural wastage.

Nick Baldwin, Executive Director of UK Operations said:

"We want to be world class and we recognise that we need to change to achieve this. We have compared ourselves with the world’s best and the changes we are announcing today will help us deliver outstanding performance to both our customers and shareholders."

NOTES

Planning permission was granted for the new central office at Pegasus Business park by North West Leicestershire District Council on 8 April 1999.

The Distribution business is responsible for the operation and maintenance of some 67,000 km of overhead lines and underground cables in a region that covers 16,000 sq km and serves 2.3 million customers.

Since privatisation, East Midlands Electricity – now part of PowerGen – has achieved a strong record of customer service improvement and price reductions (26% reduction of 90 off the average customer bill).

More information:
Mike Pollak 01203 424292
Una Mullan 0115 9955976
Esther Kaposi 0171 8262723

RELATED ARTICLE:
[22.01.99] - POWERGEN DENIES JOB CUTS
   

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CWN / Business / A-Z / PowerGen / 22 Apr 99

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