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SSE cuts 444 jobs blaming tough competition and price cap

The 'big six' energy supplier said it was offering redundancy to meter installers and customer service workers.

Sky News understands SSE has held preliminary talks with a number of other utility providers
Image: SSE has been looking to spin off its retail division
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Energy supplier SSE is to cut 444 jobs in its retail division as it faces up to the "challenges" of tough competition, the government's price cap and higher costs.

The FTSE 100 listed company said it was offering "enhanced redundancy opportunities" to meter installers and customer service workers.

SSE is involved in generation and distribution as well as supplying gas and electricity to retail customers but has been looking to spin off its retail division.

Last month, Sky News revealed that it was scrambling to find a buyer or merger partner for the division, months after scrapping a tie-up with rival npower.

The cancellation of that deal was partly blamed on the price cap - a government measure which took effect this year with the aim of protecting customers on default tariffs from being ripped off amid concern about the dominance of the "big six" energy companies.

SSE revealed last autumn that it had lost 460,000 energy customer accounts in the year to September amid what it described as an "intensely competitive" market.

The group is due to publish full-year results later this month.

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Tony Keeling, chief operating officer and co-head of retail at SSE Energy Services, said: "Like a number of suppliers, we are facing challenges due to competition increasing, the introduction of the energy price cap and higher operating costs.

"To run a sustainable business, we need to become more efficient and ensure we have the right number of employees in the right locations to best serve our customers.

"We are committed to engaging and consulting openly and transparently with colleagues, our trade union partners and appropriate employee representatives and have today announced Voluntary Enhanced Redundancy opportunities for some of our customer service and metering teams."

Trade union Unite said the announcement was disappointing but not unexpected.

National officer Peter McIntosh said it was due to the demand for smart meters to be fitted in households not reaching the levels expected by the company.