POWERGEN has bought TXU's retail business and three coal-fired power stations for £1.37 billion. TXU is currently the biggest supplier of electricity to both business and private consumers in the Bolton area after taking control of Energi -- formerly Norweb.

The takeover of TXU's 5.5 million electricity and gas consumers throughout the UK will make Powergen one of the market leaders in energy retailing and a powerful force in the competitive UK energy market.The deal does not include TXU's continental European businesses. It follows parent company Texas Utilities' withdrawal of support for its European and British businesses.

Although the majority of TXU's British staff work in the Ipswich area, there is still a considerable staff presence at the former Norweb site at Warrington.

Powergen UK's chief executive, Paul Golby, said: "We have a good record in managing change during previous acquisitions and look forward to talking to staff and their trade union representatives in the near future."

Mr Golby added: "We are now the UK's largest electricity supplier and number two in the highly competitive retail energy sector with six million electricity and 2.4 million gas customer accounts.

"Powergen has acted swiftly to safeguard the interests of TXU customers and they can be assured that they need not do anything. They will continue to receive electricity and gas without interruption.

"Powergen has one of the best records in the industry for customer service. Our immediate priority is to stabilise the TXU retail business and to work to remove any staff uncertainty as soon as possible."