Data for a sample of thirty-five U.K. gas undertakings for 1898 was used to estimate a translog cost function. Labor accou nted for less than 15 percent of total costs. Changes in outlays on c oal have significant effects on total costs. Economies of scale exist but tend to disappear at production volumes which are near to averag e for the provincial gas undertakings. After controlling for factor p rices, population density, and output levels, municipal enterprises a re shown to have lower costs than the private companies though the ef fect is small and statistically insignificant. Copyright 1987 by Royal Economic Society.