Ovo Energy has furloughed 3,400 staff, more than a third of its workforce, whose jobs have been affected by the coronavirus pandemic.
The large energy supplier, which earlier this year completed a £500 million deal to acquire the retail arm of SSE, said the move has particularly affected staff whose roles involve working in customers’ homes such as smart meter installers or meter readers.
The government has previously said all but essential work must be paused while the pandemic continues to rage around the UK.
There was however confusion over whether the smart meter rollout was to continue, with some insiders calling for more clarity from the government.
Last week it was revealed that energy suppliers had taken the decision themselves to halt the rollout.
Ovo says while furlough means its affected employees will receive 80 per cent pay from the government, the supplier will top up and cover the additional cost above the government’s £2,500 cap.
A spokesperson told Utility Week that the executive team and senior directors have also volunteered to take a 20 per cent pay-cut over the next 3 months.
“There are no changes to customer service as a result of today’s news”, the spokesperson added.