Acquisition

Centrica PLC 22 April 2003 22 April 2003 Centrica adds to electricity generation capacity Centrica plc today announced it has entered into an agreement to acquire the 229MW Roosecote gas fired power station in Barrow in Furness, Cumbria from the administrative receivers of Lakeland Power Limited, KPMG's Michael McLoughlin and Michael Seery. The acquisition is expected to complete in mid May for a payment of £24 million, funded from existing group resources. This transaction increases Centrica's total generation capacity to 1934MW. Combined with previous generation acquisitions, the transaction will help to meet approximately 22 per cent of peak day demand cover for Centrica's domestic and commercial customers. Centrica will take over responsibility for the operation and management of the station which has achieved one of the highest availability records for all UK combined cycle gas turbine (CCGT) plants since construction in 1991. Pending completion of TUPE employee consultations, thirty three staff will be transferred to Centrica from Lakeland Power Limited and Alstom Power Limited. Centrica will remain the gas supplier to the power station which is located adjacent to its Barrow gas terminals. Sir Roy Gardner, Chief Executive of Centrica, said: 'We are continuing to see strong progress in our electricity business and this transaction is a positive move to reflect Centrica's continued expansion in both the residential and commercial electricity market. This is also in line with our risk management strategy to generate a significant proportion of peak electricity requirements from our own portfolio, providing increased long term stability and support against electricity price fluctuations and spikes.' Notes: 1. Today's announcement follows Centrica's acquisition in 2001 of two gas fired power stations at King's Lynn and Peterborough, providing 705MW of generation capacity, a 60 per cent interest in Humber Power Ltd, owners and operators of a 1260MW gas fired plant in Lincolnshire and the acquisition of the 240MW Glanford Brigg gas fired plant in Lincolnshire in July 2002. Centrica's wholly owned subsidiary, British Gas Trading Limited, entered into an innovative energy tolling agreement in May 2002 to acquire rights to the total capacity of an 860 MW gas-fired power plant to be built in Spalding, Lincolnshire. The plant is expected to be operational by the end of 2004. Enquiries: Centrica Media Relations: 01753 494085 Centrica Investor Relations: 01753 494900 This information is provided by RNS The company news service from the London Stock Exchange

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