The electricity company Powergen says it will stay at its Suffolk headquarters - despite laying off hundreds of staff.

The company, Britain's biggest power supplier, is keeping its headquarters at Wherstead Park in Ipswich

Last month Powergen announced that almost 700 people working in Ipswich were being made redundant.

Staff numbers are to be cut from 936 to 250 over the next year.

End speculation

The posts are going as part of a shake-up of TXU, the rival power firm it bought at the end of last year.

The company said it was announcing its commitment to stay in Ipswich to end speculation about its plans.

Managing director of Powergen retail, Nick Horler, said: "We've taken a long look at our options and believe that this decision is the best one available to us.

"Wherstead Park offers Powergen excellent accommodation as we look to establish our presence in Ipswich into the future."

The company took over the building in October when it bought TXU in a �1.37bn deal.