Acquisition

Centrica PLC
                  

April 21, 2004

Centrica acquires option to develop additional generation

Centrica plc today announces it has acquired an option to purchase the total
share capital in a subsidiary of Carlton Power Limited which owns land and
consents for developing a gas fired power station of up to 1000MW at Langage,
Devon.

Centrica now has the right to acquire Wainstones Power Limited and ultimately to
develop and construct a new combined cycle gas turbine (CCGT) plant.

A decision to progress to construction would include an agreement with Carlton
Power Limited to provide a range of essential pre-development project services.
This would bring total net consideration, excluding construction costs, to
approximately £12.8 million, part of which has already been committed.

Jake Ulrich, Managing Director of Centrica Energy, said: 'This agreement enables
us to buy in to one of the few consented power station projects in the UK at an
attractive price, giving Centrica the ability to progress development of a plant
with specific locational and long term benefits.

'This aligns with our strategy of adding to our flexible generation portfolio
which reflects the growth in our electricity business, while enhancing the
security of supply position for our customers and the UK market.'

Notes to editors:

Langage is one of only three consented large scale power station projects in the
UK.

Enquiries:

Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900