Centrica Agrees First Coal-Indexed Power Purchase

Centrica PLC
                  

Centrica plc today announced it has agreed its first coal-indexed power purchase
agreement, which will see International Power supplying a daily 250MW volume of
peak electricity to British Gas, commencing in October 2005.

The agreement, which will run for three years, is in line with Centrica's aim of
bringing greater diversity to its power portfolio by including coal indexation.

The price paid under the contract, which will deliver around 2.34TWh over the
term, will be directly indexed to international coal prices.

Jake Ulrich, Managing Director of Centrica Energy, said: 'As the UK's leading
domestic electricity supplier, our British Gas business will benefit from this
agreement which further diversifies the range of sources from which we procure
our power.

'This is the first step in our strategy to increase the link between our input
costs and coal pricing and we expect to consider other similar opportunities
going forward.'

Enquiries:

Centrica Investor Relations 01753 494900
Centrica Media Relations 01753 494085