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Gas price cap threat to jobs

23rd May 1996, Page 14
23rd May 1996
Page 14
Page 14, 23rd May 1996 — Gas price cap threat to jobs
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by Derren Hayes • Thousands of drivers working for TransCo, British Gas's pipeline division, could lose their jobs following proposals made by the gas regulator on tough new price controls.

Clare Spottiswoode, director-general of industry watchdog Ofgas, has proposed cuts of up to 28% in the amount TransCo can charge gas suppliers when the company's five-year contract comes up for renewal on 1 April 1997.

TransCo transports and stores gas in the UK for the 40 gas companies which supply consumers. TransCo says Spottiswoode's recommendations would cost up to .C850m and could result in half its 20,000 staff being made redundant. "Details on where loses would be haven't been finalised, but they would be across the board on a wide scale." says the company.

TransCo has 7,000 employees licensed to drive trucks over 3.5 tonnes including 3,500 service engineers: it runs a UK fleet of more than 8.500 vehicles.

TransCo says the proposal could jeopardise the supply of gas to 19 million household consumers—it has urged staff to lobby MPs and Ofgas in a hid to stop the move.

Since 1994 TransCo has shed 13,000 jobs: even before the Ofgas move it planned a further 2,000 job losses over the next two years.

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