Npower Raids McKinsey To Spark Recovery Drive

Npower, the energy retailer, is drafting in an executive from the management consultancy McKinsey in a bid to improve its dismal performance.

Sky News understands that Kyle Braden has been appointed by Paul Coffey, Npower's recently installed boss, as the company's chief recovery officer - a new role.

The appointment comes after a turbulent period for the German-owned energy group, which has been beset by regulatory fines, intense criticism for its customer service and mounting losses.

On Thursday, RWE (Xetra: 703712 - news) , the German utility, said losses at its UK business had reached £111m in the first nine months of the year, compared to an £81m loss during the same period in 2014.

Mr Braden, a partner in McKinsey's energy practice, is expected to focus on a string of initiatives aimed at restoring Npower to profitability at a crucial time in Britain's energy market.

Competition regulators are close to publishing a final set of proposals for overhauling the industry, with measures to ease switching between suppliers among the most prominent.

Npower, one of the 'big six' companies which dominate the market, has been struggling for some time, and in August replaced both its chief executive and chief financial officer in an attempt to reverse its decline.

Like its competitors, Npower has come under continued pressure from Amber Rudd, the Energy Secretary, to cut gas and electricity prices as wholesale costs have fallen.

“We have initiated a fundamental recovery programme in order to stabilise the business as early as possible whilst providing a more robust and effective operating basis to serve our customers in future," Mr Coffey said.

He said that the management changes which had ensued would "provide the necessary capability to execute an effective and sustainable recovery”.

Npower and McKinsey declined to comment.