British Pipeline Cuts 2,400 Jobs
Feb. 07, 2002
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LONDON (AP) _ Gas pipeline operator Lattice Group PLC said Thursday that it will cut 2,400 jobs in Britain, or 17 percent of its work force there, in response to tough pricing targets being set by regulators.
The job losses, which had been expected, will affect workers at its Transco business, which employs 14,000 people in Britain.
``Transco is a manpower-intensive industry and a reduction in operating expenditure over five years will regrettably have an impact on jobs,'' the company said Wednesday.
New customer pricing targets were set in September by the Office of Gas and Electricity Markets, or Ofgem, to cover the five-year period beginning April 1.
Ofgem wanted to cut Transco's revenue by 4.0 percent next year and by 2.0 percent annually thereafter until 2007.
In October, Lattice said it accepted the ``challenging'' regulatory proposals to lower its charges _ which could see household bills falling by 5 pounds ($7.07) a year.