Midlands electricty gets new name

By THIS IS MONEY
Updated:

 

ELECTRICITY generator Powergen is merging and renaming its Midlands distribution business after completing its £1.14bn takeover of Midlands Electricity.

Powergen said it will bring together Midlands Electricity with its existing East Midlands Electricity business under the name Central Networks.

The group has said there are likely to be redundancies as part of the merger of the two businesses, which together employ about 5,000 people. It has so far refused to give numbers or to say whether depots or offices will close as part of the deal.

But the company said it plans to enter a consultation period with staff and unions as it announced completion of the deal today.

Powergen, which is owned by German energy group Eon, said last October that it was buying Midlands Electricity from Aquila and First Energy of the United States.

The new business will be the UK's second largest electricity network operation, serving 4.8 million customers across central England.

Midlands Electricity employs 1,964 staff in its distribution business, 1,194 in its metering operation and 533 in its contracting business activities.

It distributes electricity to homes and businesses across Shropshire, Staffordshire, the West Midlands, Herefordshire, Worcestershire and Gloucestershire.

EME is based at Castle Donington in Leicestershire and runs some 67,000 kilometres of overhead and underground lines.

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