ENERGY supplier Innogy last night announced that 450 jobs could be created in the North-East as part of a major restructuring process.

Innogy plans to increase staff at its Peterlee call centre in County Durham from 200 to 750, subject to staff and union consultations.

However, the shake-up will also see 1,100 jobs shed across the country as part of a "streamlining" process.

The integrated energy firm, which has 5.5 million gas and electricity customers nationwide, will cut its seven customer service centres to three.

The jobs will be phased out over the next 18 months at centres in Sheffield, Bradford, Swindon and Worcester.

The remaining sites at Peterlee, Stoke and Oldbury, near Birmingham, will benefit from fresh investment.

Innogy spokesman Alan Thompson confirmed that 450 new jobs would be created in Peterlee and a further 450 in Stoke. "These are proposals at this stage, pending union acceptance," he said.

Innogy and Northern Electric and Gas recently agreed a £1bn swap deal which involves Northern acquiring Innogy's Yorkshire Electric distribution business, while Innogy will be responsible for the sale of electricity and gas to domestic and business customers. Innogy now needs to find £35m in savings.

Brian Count, Innogy's chief executive officer designate, said: "The changes we are proposing are part of what we need to do to be leader in an increasingly competitive marketplace.

"The new structure of the customer service organisation means that regrettably, some sites will close in time.

"While staff will have the option of transferring, we recognise that this option may not be practical and that some staff will opt for a redundancy package."