(Reuters) - Npower, the UK arm of Germany utility RWE
The source said that npower will also outsource 550 jobs to another company within the UK.
RWE recently said it planned to cut 6,750 jobs across Europe during 2014 to 2016 to fight a deep crisis in Europe's energy industry.
Npower is among the big six energy suppliers in the UK that have raised household electricity and gas charges. The company in October announced an average rate increase of 10.4 percent.
Sky News, which first reported the news, said employees in the Midlands and in the north of England were expected to be the most affected.
Npower employs about 9,500 people in the UK.
(Reporting by Aashika Jain in Bangalore; Editing by Steve Orlofsky)