Kelda Group, owners of York Water Works since the spring of this year and parent company of Yorkshire Water, has decided to sell one of its former subsidiary businesses, York Gas, to Independent Energy Holdings plc.
This decision follows a careful review of York Gas and its position in the gas market and also of the broader Kelda Group strategy.
Yorkshire Water finance director John O'Kane said that York Gas had made good progress since its formation in 1995 but he added that Kelda had taken a careful look at the gas business and decided that it did not fit with future plans and business strategy.
"York Gas is a good company with over 37,000 domestic and 700 industrial and commercial customers across the country, with particular strength in the Yorkshire region. However we are concentrating on other business opportunities that are closer to the core skills we have within Kelda and for this reason we have decided to sell."
He added: "Where possible in the sale negotiations we have looked for the best possible protection for current York Gas employees.
"We remain very committed to providing an excellent service to our water and sewerage customers in York and are looking for further opportunities to strengthen our ties to the city in the future."
