npower scandal

RWE Replaces Top U.K. Managers

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The IT department of N-Power is hopelessly outdated, said one manager.
  • Why it matters

    Why it matters

    Troubled operations in Britain pose an other threat to RWE’s profitability, which has suffered hugely from Germany’s transition to renewable energy.

  • Facts

    Facts

    • In response to problems at its U.K. subsidiary npower, RWE has replace management.
    • Supervisory board member Dieter Zetsche, CEO of carmaker Daimler, will resign next year, Handelsblatt has learned.
    • RWE is already in a bind due to Germany’s phasing out of nuclear energy and switch renewable energy sources.
  • Audio

    Audio

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It all happened quickly in the end.

Tuesday last week, Handelsblatt reported on a new trouble spot for Peter Terium, the chief executive officer of RWE, Germany’s second-largest electric and gas utilities company after E.ON. There were indications of mismanagement at RWE’s British subsidiary, npower.

On Thursday, the German utility admitted to considerable burdens in its interim report and now, Mr. Terium is firing both npower’s chief executive, Paul Massara, and the chief financial officer, Jens Madrian, people familiar with the matter told Handelsblatt.

According to the sources, npower’s new chief executive will be Paul Coffey, who became npower’s chief operation officer in April.

The British problem comes at a time when Handelsblatt learned RWE will also lose one of its supervisory board members, Daimler chief executive Dieter Zetsche.

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