E.ON UK, the company that runs Powergen, has bought Glasgow-based heating services company City Technical Services Ltd for an undisclosed sum.

The purchase of City Technical is in line with E.ON’s strategy to develop a comprehensive domestic utility offering. The policy reflects the reality that, while profit margins remain slim on primary energy supply in the UK, the margins for add-on services such as in-home servicing offer energy companies strong income potential.

CTS is a central heating specialist in three principal markets: Social housing – local authorities and housing associations; work for national utility companies; and Warm Front activities – a government-funded scheme to help people on low incomes.

The company, which employs 150 staff, provides domestic central heating installation, maintenance and service, pre- and post-installation inspections, safety inspections and a 24/7 emergency breakdown service, throughout the UK.

Dr Paul Golby, chief executive of E.ON UK, said: This is an excellent fit for us and shows our commitment to provide new services to domestic customers. We’ll be able to use our new employees to encourage our customers to become more energy efficient safe in the knowledge that the CTS team have years of experience in the home energy services market, a good presence across the country and a reputation for quality, which is precisely what we want.