Acquisition

Acquisition 

    LONDON--(BUSINESS WIRE)--July 24, 2003--

Centrica acquisition reflects continued growth in electricity business

Centrica plc today announced it has entered into an agreement to
acquire the 240MW Barry power station in South Wales from AES Barry
Limited and AES Barry Operations Limited, wholly owned subsidiaries of
AES Corporation. Pending completion in late July, the acquisition will
boost Centrica's total generation capacity to 2,174 MW, approximately
25 per cent of its peak day domestic and commercial electricity
customer demand.

The gas fired power station will be acquired on a debt free basis for
a payment of £39.7 million funded from existing group resources.

Centrica will take over responsibility for the operation and
management of the combined cycle gas turbine (CCGT) plant, which
employs thirty-one staff.

Barry entered commercial operation in 1998 and has operated in both
baseload and flexible modes. The plant will provide electricity to
match the typical demand shape of Centrica's growing electricity
customer base.

Today's announcement follows Centrica's acquisition from the
administrative receivers of the Roosecote gas fired plant in May.
Together with existing generation capacity at Brigg, Humber, King's
Lynn and Peterborough, Centrica has a portfolio of power plants that
fits its strategy of increased long term stability and protection
against electricity price fluctuations and spikes.

The output from these power stations, at current running profiles,
together with the previously announced Spalding tolling agreement and
the fixed price element of the British Energy contract, will secure
about 60 per cent of Centrica's projected annual supply commitments by
2005. Further fixed priced power procurement contracts, and the option
to increase significantly output from the generation plants, ensure
that Centrica's potential exposure to rising wholesale prices is low.

Sir Roy Gardner, Chief Executive of Centrica, said: 'Today's
acquisition of Barry adds to our modern gas fired power stations
acquired at advantaged prices. With more than six million electricity
customers, we are the number one supplier to the UK domestic market
and we now have a leading generation portfolio to cement our
position.'

Notes:

1/Today's announcement follows Centrica's previous generation
acquisitions:

-  In 2001 Centrica acquired two gas fired power stations at King's
    Lynn and Peterborough, providing 705MW of generation and a 60 per
    cent interest in Humber Power Ltd, owners and operators of a
    1260MW gas fired plant in Lincolnshire.

-  In July 2002, Centrica acquired the 240MW gas fired Glanford Brigg
    plant in Lincolnshire.

-  In May 2003, Centrica completed the acquisition of the 229MW
    Roosecote gas fired plant in Cumbria.

Enquiries:

Centrica Media Relations:                      01753 494085
Centrica Investor Relations:                   01753 494900

   Short Name: Centrica PLC
   Category Code: ACQ
   Sequence Number: 00007512
   Time of Receipt (offset from UTC): 20030724T081222+0100