We received a petition asking:
“We the undersigned petition the Prime Minister to stop National Grid’s closure of its Newcastle site.”
Details of Petition:
“189 valuable, local jobs at the National Grid’s Newcastle office are under threat of being off shored, despite National Grid making a massive profit of nearly £3billion, a 12% rise from the previous year. National Grid is a UK based company that is set to benefit form the huge investment required to upgrade the countries energy infrastructure. These sackings are unnecessary cost cutting and nothing more than pure, corporate greed. The joint trade unions who represent the workers on the site have pledged their full support to stop these job cuts. We demand: -That government puts pressure on National Grid to stop these unnecessary sackings. -The Act of Parliament which governs the conduct of the energy regulator is changed to ensure that OFGEM have to take into consideration socio-economic factors including retaining jobs in the UK when reaching decision on funding for the regulated energy sector. For more information visit www.nationalgreed.co.uk.”
· Read the petition
· Petitions homepage
Read the Government’s response
The Government regrets any loss of jobs. The Regional Development Agency, One North East, are fully aware of the situation regarding National Grid’s announcement of the closure of its office based at Quorum Business Park. One North East will ensure that all possible avenues will be explored to assist those staff who may lose their job to a positive outcome during this difficult process.
This assistance could include the setting up of a Task Response Group, with the aim of matching the skills of employees to other suitable job vacancies or offering possibilities for re-training. An announcement has just been made, for example, that Tesco Bank, the largest supermarket bank in the UK, will base its general insurance services division at Quorum Business Park, North Tyneside potentially creating up to 1,000 jobs. One North East, Tyne and Wear Development Company and North Tyneside Council have worked closely with Tesco Bank to secure business finance, scout locations and will now also assist with the enormous recruitment drive for its contact centre.
The Energy Regulator, Ofgem’s first priority is the protection of consumers. It does this by promoting competition, wherever appropriate, and regulating the monopoly companies which run the gas and electricity networks.
Ofgem sets five yearly price controls for network companies, including regional monopoly transmission owners, such as National Grid. Ofgem consults widely with the companies and all stakeholders in each price control review. The aim is to strike a balance between protecting customer interests and allowing the companies enough resources to operate efficiently. The price controls set the financial framework in which the network companies must operate. Ofgem does not, however, dictate to companies’ management how such costs (including staff costs) should be managed. The steps companies take to improve efficiency are entirely up to them.
