Centrica Confirms Job Reductions in British Gas

Centrica PLC
                  

15 July 2005

Centrica confirms job reductions in British Gas

Centrica confirms that as part of its ongoing transformation programme in
British Gas and continued drive for cost efficiencies, it is reviewing the
future of its back-office operations.

As progress with the transformation programme continues, the company will have a
requirement for fewer back-office staff. A number of options have been
considered for the remainder of the back-office activity and, following due
diligence and consideration of alternatives, it is now proposed that these roles
be transferred to India. In total around 2,000 roles could be lost from the
organisation, contributing to the achievement of the previously identified
benefits from the transformation programme.

There will be no impact on jobs in 2005 and no customer facing roles are
affected.

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


Notes to editors:

1. British Gas is currently engaged in a major transformation programme designed
to reduce operating costs and improve services through investment in new systems
and process improvements.

2. British Gas remains a leading UK employer with some 26,000 staff nationally.

3. This year British Gas expects to recruit more than 2,500 customer service and
sales staff and service engineers.