A York gas supply company is to close, leaving a question mark hanging over the future of 88 jobs.

NPower, which took over Lendal Bridge-based York Gas six months ago, today confirmed that the city base will close in June.

A spokeswoman said 12 of the 88 jobs were permanent posts, with the remainder being filled by temporary and contract workers.

She said the company was looking at other premises, but could not confirm what would happen to the jobs.

York's economic leaders today launched a dedicated effort to keep NPower in York.

Bryn Jones, manager of the city's Economic Development Unit, said: "We will be seeking to enter into dialogue with the company.

"We understand that it is looking at different options for an alternative base, and that York is one of those.

"We are, of course, extremely concerned about the future of these jobs and we will be doing everything we can to make sure the company stays in York."

But an employee, who asked not to be named, said workers had started looking for alternatives.

He said: "We are talking about billing co-ordinators, administrators, call centre operators, sales people, debt collectors - everybody who is part of this company.

"People are all similarly qualified and we are all trying to find the same sort of jobs in York. It is going to be difficult to say the least."

An official statement from NPower reads: "NPower can confirm that (York Gas Commercial's base in) Lendal Bridge, York, is planning to close in the near future.

"The closure is due to the fact that the lease on the premises expires in June. NPower and York Gas are currently investigating options for relocation post-June."

A spokeswoman said: "We are looking at our options."

York Gas Commercial, which operates from Lendal Tower, used to be part of the York Waterworks Group. Independent Energy took it over in 1999, but that company went into receivership in September last year, and it was taken over by NPower.

Updated: 11:23 Thursday, April 05, 2001