Slow Green Deal forces Carillion to restructure

The slow development of the Green Deal has forced Carillion to restructure its energy services division.

The company will be forced to spend £40 million to restructure this part of the business “to ensure that it is aligned in size to the markets in which it operates”.

The Green Deal had only 12 live plans at the end of August, with a further 677 plans in the system.

In a statement to its shareholders today, Carillion said: “The development of the Green Deal market continues to be slow and the Energy Company obligation (Eco) may now be subject to further delays.”

It added: “We are still assessing the extent of the restructuring required, while ensuring we maintain an effective offering and service delivery model.”

Despite this, Carillion said it is trading in line with its expectations for 2013 and that across the group the order book and pipeline of contract opportunities “both remain strong”.

Carillion also announced that it is the preferred bidder for a 10 year contract, worth up to £100 million to deliver energy saving initiatives for the Sussex Energy Saving Partnership.