Carillion puts 4500 staff on notice

Published:  15 December, 2011

WOLVERHAMPTON: Carillion has put 4500 staff – its entire energy services division – on notice of redundancy following the Government's decision to cut to solar power subsidies.

The staff were told that a 90-day consultation on their posts had begun. It follows the fall-out from the Government's decision to halve the Feed-in Tariff rate, the amount paid for solar power which is fed into the national grid.

The move could lead to about 1000 jobs being lost and comes less than a year after Carillion paid £306m for Eaga, the renewable energy firm which became its energy services division.

Last month, the Government announced plans to cut Feed-in Tariffs, including on the type of larger installations Carillion has been engaged in fitting, which will drop from more than 30p per kWh to 16.8p or less per KWh.

Breyer Group - another major solar panel contractor – reported this week that it could lose up to 15% of its turnover this year thanks to the slashing of FiTs. Last week, housing provider Peabody cancelled its order for solar installations from Solar Bright, Breyer's energy arm, at its homes from 12 December, costing the company £12m in lost revenue.

The Chancellor's Autumn Statement contained no further Green Deal incentives while the Government's National Infrastructure Plan was criticised for not integrating green construction principles.

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