UK energy giant to axe 2,600 jobs

ONE of the UK’s largest household energy firms plans to axe 2,600 jobs as it cuts back its Scottish operations.

Ovo said its offices in Glasgow and Selkirk will join the Reading branch in closing as a result of the redundancies.

However, the majority of workers affected are those who work out in the field around the UK, such as meter readers and home service engineers. The firm had taken over SSE’s retail division at the beginning of the year in a £500million deal.

Yesterday, Ovo blamed the Covid-19 outbreak for what it described as an ‘acceleration’ to cost-cutting measures in the wake of its merger with its Scottish rival.

Employees were told of the cuts yesterday during a live online broadcast. Scottish Labour leader Richard Leonard said: ‘This news will come as a big shock to the workforce, who were reassured last autumn that the sale of SSE’s energy services arm to Ovo would not result in job cuts.’

The announcement comes only 18 months after Ovo took over Scottish energy firm Spark Energy, making it one of the biggest private employers in the Borders region.

Since the lockdown measures Ovo’s office in Selkirk has been empty, with more than 00 staff working from home. The company is now looking to reduce its 8,000 UK-wide staff as a result of more customers dealing with the company online. John Lamont, MP for Berwickshire, Roxburgh and Selkirk, said: ‘Ovo is a big employer in the Borders and this news will add further challenges for our local economy at a time when we are already dealing with the coronavirus.’

Ovo Energy chief executive Stephen Fitzpatrick said: ‘Like all businesses, we face a new reality and need to adapt quickly to enable us to better serve our customers and invest in a zero-carbon future.’

A spokesman for Ovo Energy added: ‘We will be closing our Selkirk office where around 00 Spark employees work from. Employees will be offered voluntary redundancy as part of our programme. Those who remain will be relocated or will work from home.’