Npower Rainton Bridge to be 'one of the prime locations affected' by company's huge job loss announcement

A spokesman for Unison confirmed the news to the Echo, as details start to emerge about plans Npower has to restructure its UK business operation.

The changes, which were revealed to workers on Friday, are expected to lead to the loss of around 4,500 and the closure of call centres.

An estimated 2,000 people are employed at the centre in Rainton Bridge, Houghton. The building was acquired by the energy company in 2009.

There are also call centres in Hull, Leeds, Birmingham, Solihull, Oldbury, Worcester and Swindon.

Dave Prentis, Unison general secretary, hailed the announcement as a “blow” to employees who have had fears over their jobs for months.

He said: “Now their worst fears have been realised, less than a month before Christmas.

“The UK energy market is in real danger of collapse. If nothing is done, there could soon be other casualties.

“Npower’s demise means there’s no time to waste. It makes the powerful case for bringing the retail arms of the Big Six energy firms into public ownership.

“This would preserve jobs, ensure customers get a better deal and allow the UK to meet its carbon neutral targets.”

Job losses are expected to take place over the next two years.

Npower said it was facing an "unsustainable business situation" which has persisted for a number of years.

Johannes Teyssen, chief executive of Npower's owner, E.ON, said: "The UK market is currently particularly challenging.

“We've emphasised repeatedly that we'll take all necessary action to return our business there to consistent profitability.

"For this purpose, we've put together proposals and already begun discussing them with British unions."

E.ON UK chief executive Michael Lewis said: "With Npower becoming part of the new E.ON – creating the second largest supplier in the UK – we need to build a sustainable business with a lower cost base that allows us to compete in this extremely challenging market.”

Jonathan Walker, assistant director of policy, North East England Chamber of Commerce said: “While it wouldn’t be fair comment too much on speculation, our contact centres are an important part of the North East economy and is a sector in which we excel. Where there are any job losses there must be all necessary support in place so that people are helped to find alternative employment that matches their skills.”