黑洞社区

A major slimming-down of Carillion鈥檚 energy services business due to the faltering Green Deal market will cost up to 1,000 jobs, the firm鈥檚 chief executive has said.

The contractor announced the move last month, blaming a continued slow market for the government鈥檚 flagship Green Deal programme and its expectation that the Energy Companies Obligation (ECO), which targets works in 鈥渇uel-poor鈥� households, 鈥渕ay now be subject to further delays鈥�.

Carillion said then that it expected the 鈥渞estructuring鈥� to incur 鈥渢otal non-recurring operating charges of some 拢40m in 2013鈥�.

At the time there was speculation that job cuts could be of the same magnitude as when the company laid off 1,400 people last year due to the cut in the Feed-In Tariff for solar panels, as that also resulted in a 拢40m charge.

This week, Carillion chief executive Richard Howson told 黑洞社区 that 鈥渁pproaching 1,000 people鈥� would lose their jobs and called on the government to market the Green Deal better and simplify the signing-up process.

He said: 鈥淭he appetite of the public and business to invest in their properties [鈥�] has been very disappointing. I would like [the government] to review the process.

鈥淚t takes six or seven hours to do a Green Deal assessment on a simple domestic property. It鈥檚 a very complicated process.

鈥淚 also feel the government should market the Green Deal centrally. Most people on the street wouldn鈥檛 be able to explain it and probably wouldn鈥檛 have even heard of it.鈥�

Howson said uptake of ECO had been slower in the second two quarters of 2013 than Carillion had expected but reiterated the firm鈥檚 support for this programme and the Green Deal.

鈥淲e are still committed to the enhancement of domestic and commercial properties because we believe that this is the key to reducing the country鈥檚 carbon footprint and offsetting continual energy price rises,鈥� he said.

Carillion鈥檚 energy services business is largely made up of Eaga, which was acquired for 拢298m in 2011.