Acquisition

Centrica PLC
                  

August 20, 2004

      Centrica exercises option on Langage power station project

Centrica plc today announced it has exercised its option to acquire 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.

The Langage project is one of only three large scale power station developments
in the UK which are consented and aligns with Centrica's strategy of generating
a growing proportion of its own electricity for British Gas customers. Langage
has specific locational benefits, being situated in the south-west which has
little existing generation capacity. An operational plant would assist the
south-west and the UK's wider security of supply position.

The acquisition of the subsidiary, Wainstones Power Limited, follows an option
agreement entered into by Centrica and Carlton in April 2004. Carlton Power has
been retained to provide essential pre-development project services. If a
decision is taken to construct the plant, total consideration excluding
construction costs would be approximately £12.8 million, part of which has
already been committed.

Jake Ulrich, Managing Director of Centrica Energy, said: 'Faced with increasing
wholesale prices in the UK's changing energy market, today's purchase provides
an opportunity to increase our own generation as we look to meet a growing
proportion of our British Gas customers' needs from our own sources.

'We will now work closely with Carlton Power on the Langage project before
making any decision on construction.'

Enquiries:

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