THE boss of an energy firm employing 3,000 North-East workers has lost his job.

Paul Massara, chief executive at Npower, has been replaced as the business looks to rebuild its reputation.

The Northern Echo last week reported how Mr Massara’s position was under increasing pressure, and the company has now confirmed he has been replaced by former chief operating officer Paul Coffey.

The energy supplier, owned by Germany’s RWE, has been plagued with problems, most notably with its billing system, which have contributed to a customer exodus.

Earlier this month, it said it had lost 300,000 accounts over the last year, with first half profits falling 65 per cent to £38m.

Reacting to his appointment, Mr Coffey said the business, which has offices in Rainton Bridge, Houghton le Spring, must look to the future.

He said: “It's clear RWE Npower’s domestic business is not performing in the way our customers, shareholders, or our employees demand.

“Since joining in April this year, I have been hugely impressed by the energy and commitment of our staff to do the right thing for customers.

“This is one of the fundamental ingredients of future success.

“I am looking forward to working with my management team, those already in Npower and those joining, as we build on the foundations already laid to improve our performance.”

Npower has 5.1 million gas and electricity customer accounts, but lost 300,000 after a revamp of its payment procedure 18 months ago, when errors saw some households receive multiple bills and others get none.

Last year, the company’s office in Thornaby, near Stockton, was closed as part of a drive to cut costs and make its Rainton Bridge offices, where it employs about 3,000 people, the centre of customer service operations.

The firm has also shifted back office work to India and UK outsourcing companies.

Under its changes, Dirk Simons will take over from Mr Coffey as chief operating officer, with Martin Mikláš its new chief financial officer.