British Gas owner, Centrica, has confirmed it plans to cut around 700 management and back office jobs.
The move is part of the company’s “transformation” announced in February 2018, which is expected to reduce staff numbers by around 4,000.
The price cap, combined with customer departures and “fierce competition” have been cited as reasons.
A “full consultation” process will take place over the next 45 days.
The GMB union has hit back at the news, arguing that British Gas cannot “cut its way out of a crisis”.
Centrica said it has been delivering “efficiencies” throughout 2018 and this year.
A spokesperson for the energy supplier said: “As part of our ongoing transformation – announced in February 2018 – today (19 June) we have communicated further proposed changes to some of our colleagues. The roles potentially affected are in management layers and back office functions.
“This difficult decision was made because we need to respond to the growing challenges we face. The energy market is going through continued rapid change, competition is fierce, our energy customers are leaving us and we’re operating under a price cap.
“Over the next 45 days, as part of a full consultation process, we will discuss the proposals and seek the views of employees and their representatives.”
Justin Bowden, GMB national secretary, said: “Centrica’s still falling share price tells you everything you need to know about the state of the company and how it has been run over the past few years.
“British Gas cannot just cut its way out of a crisis, largely of its own making, simply by slashing jobs and trying to offshore.
“There has to be investment, innovation and a proper plan and vision for the future that reverses customer losses, produces growth and puts right some deep-seated cultural issues.”
Earlier this year Centrica announced around 500 jobs in the UK were at risk, with 400 looking likely to go in Scotland due to “growing challenges” including the price cap.
The energy company is not the only supplier to announce job cuts in recent months.
SSE also blamed the price cap when it revealed job cuts last month.
In January, Npower announced around 900 jobs were due to be axed due to the “extremely tough UK retail energy market conditions”. Meanwhile in August last year, Eon confirmed it was “seeking” to cut 500 jobs across its UK operations.
And the water sector is also having to make cuts too. Southern Water is currently consulting on removing 200 customer service jobs with plans to outsource such functions.