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Boss of crisis energy firm cutting hundreds of Scots jobs told to explain £40m payments
23.01.2022 - 08:25 / dailyrecord.co.uk
The CEO of an energy company cutting hundreds of Scots jobs is facing demands to explain £40million of loans and cash transfers.
Stephen Fitzpatrick’s Ovo Energy was given £17million in furlough payments after taking over Perth-based SSE’s retail division in January 2020.
But the businessman – whose firm was criticised for suggesting people cuddle their cat and “do star jumps” to keep warm as bills soar – is now slashing 1700 jobs as part of a restructuring.
A headquarters in Perth employing 700 people is to be slashed along with bases in Edinburgh and Cumbernauld, where hundreds more work.
Accounts filed at Companies House show Ovo was billed £21million by parent company Imagination Industries Ltd – also controlled by Fitzpatrick – to cover “brand royalty fees”.
Meanwhile, almost £20million was invested by Imagination Industries in other business ventures set up by the 44-year-old tycoon, including a flying taxi firm and a prosecco distributor.
Unite general secretary Sharon Graham and SNP MP Pete Wishart have demanded an explanation, and assurances money has not been diverted that could have saved jobs at Ovo.
Graham said: “There are a lot of questions that need answering about Ovo’s accounts.
“At the very least, there should not be a penny more of taxpayers’ money spent on Ovo until they provide answers.
“Right now, the Ovo offices in Perth, Edinburgh and Cumbernauld are going to be axed, which puts hundreds of jobs at risk.
“Unite has been demanding the company open the books before any redundancies are forced on the workforce.”
Perthshire MP Wishart added: “When Ovo took over from SSE, they came with all sorts of commitments to develop the site, sustain jobs and to grow.
“Instead, what we find two-and-a-half years later is
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