The purchaser, newly privatised company Welsh Water, rebranded itself as Hyder. The business plan was to make significant logistical savings by combining the field activities of Electricity and Water operations by co-locating in a reduced suite of offices and operational depots.
In 1997 SWALEC Gas was set up to take advantage of the deregulation of the gas market in the UK which took place in stages from 1997 to 1998. An advertising campaign was launched featuring Wimbledon F.C. and Wales footballer Vinnie Jones.
In February 2000, the retail electricity and gas business under the Swalec brand was sold to British Energy for a reported £105m. The sale included the Swalec retail brand, whilst Hyder retained the Swalec electricity distribution business (i.e. running the electricity network) which was renamed Infralec.
Swalec remains a brand used by SSE for the supply of electricity and gas in Wales.