Hundreds of power jobs under threat following restructure

HUNDREDS of jobs are at risk across the Midlands following a decision by the new owner of utility firm Central Networks – now part of Western Power Distribution – to cut overheads following its acquisition of the company earlier this year.

Unions believe as many as 800 jobs could be lost at Central Networks’ two offices in the region, at Tipton and Castle Donington, Leicestershire.

The company is responsible for electricity distribution in the Midlands, South Wales and the South West, with responsibility for overhead lines, underground cables and substations.

The jobs of engineers and control room operators are thought to be safe but the future of many support staff is now in question.

US corporation PLL acquired Central Networks from E.ON in a deal worth £4bn in March. The acquisition saw PPL, which also owns Western Power Distribution, become the largest low-voltage network owner in the UK.

It is thought some of the jobs from the two offices could be transferred to Western Power’s centre in Bristol.

Union representatives are now thought to be in talks with Western Power about the scale of redundancies proposed.

The decision to cut the jobs is a consequence of a restructure following completion of the acquisition process. Unions believe the restructuring with bring the Central Networks operation into line with Western Power’s existing operations.

Elsewhere, jobs are also under threat at the Wolverhampton manufacturing base of the company behind home improvements brands Dolphin Bathrooms, Sharps Bedrooms and Moben Kitchens.

Manchester-based Homeform, which is owned by US private equity firm Sun Capital Partners, is on the verge of calling in administrators.

Formerly known as Limelight Group, the company employs around 1,300 people.

A statement from the group said: “The board of Homeform Group Ltd have today (Thursday) filed with the Court a Notice Of Intention to Appoint an Administrator. This process can take up to ten working days.

“At present, the Homeform Group remains under the control of its directors. The directors are close to securing a deal that will safeguard the future of the Sharps (Bedrooms) and Kitchen Direct businesses and have mandated advisers to seek a sale of the Moben and Dolphin brands.”

In the year to the end of March 2010 Homeform posted Ebitda of £955,000, compared with a loss of £3.4m in the previous year.