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British Gas owner to axe 1,500 jobs and warns against energy price caps | Business Matters

British Gas owner Centrica is to cut 1,500 jobs this year and has warned that energy price caps could push up household bills, reports The Guardian.

The company said warmer than normal weather so far this year had resulted in lower than expected energy consumption in the UK and North America. In the UK, wholesale oil and gas prices have fallen. The group has also been affected by the temporary closure of its North Sea gas storage plant.

The latest job cuts, from a 36,500-strong workforce, form part of a major restructuring announced by its then-new boss Iain Conn in July 2015. About 3,400 jobs went last year. In total, 6,000 jobs will be cut. The group achieved savings of £384m last year, but is aiming for annual savings of £750m.

The trading update came ahead of Centrica’s annual shareholder meeting on Monday afternoon.

The proposed energy price caps could drive up household bills, the group warned.

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British Gas owner to axe 1,500 jobs and warns against energy price caps.