British utility Centrica said today it is on track to achieve cost savings of more than £100m this year despite difficult trading conditions.
In a trading update, Centrica said Covid-19 continued to impact the company in the first quarter as electricity demand from its UK business customers was down around 15%.
Residential boiler installations were down 11% compared with the first quarter last year, and non-essential service visits were postponed to protect staff and customers from the risks of catching and spreading Covid-19.
"As expected, trading conditions have remained tough in the year to date," Chris O'Shea, Centrica's group chief executive said.
"However, the modernisation of our group remains on track and the difficult, but necessary process to move colleagues onto new terms and conditions is now complete," he added.
Centrica said 98% of its UK staff have accepted new contracts.
The British Gas owner has sought to reinvent itself as an energy service provider, selling upstream assets.
Restructuring plans announced last year are expected to lead to a total reduction of around 5,000 roles across the group when compared with the start of 2020.
This year has seen a series of industrial actions from a portion of British Gas’ services engineer staff over terms and conditions.
The group's net debt, including margin cash, at the end of the first quarter was £0.5 billion, down from £3 billion at the start of the year.
Centrica said it was not providing specific earnings or cash flow guidance for this year.
Centrica currently employs more than 26,000 people worldwide and owns Bord Gáis Energy here.
