Acquisition Energy America

Centrica PLC
12 December 2000

12 December 2000



Centrica builds its energy retailing operations in North America

Centrica plc announced today that it will assume full ownership and management
control of Energy America LLC, the energy retailing joint venture that sells
gas and electricity to around 400,000 residential and small business customers
in the USA. Centrica will acquire the outstanding 72.5 per-cent stake of
former partner Sempra Energy, for a consideration of approximately $56m (£
38.62m) in cash.

The agreement follows Centrica's acquisition of Direct Energy Marketing
Limited in August this year, which included a 27.5 per-cent interest in Energy
America.

The acquisition of Sempra Energy's shareholding in Energy America gives
Centrica full ownership of the customer base, giving a platform for
development into the US market. It also creates an opportunity to integrate
the company into Direct Energy's Toronto operations, together with its
associated energy resources division in Calgary.

These changes will help reinforce Centrica's position as the largest
unregulated energy sales operation in North America. The offer is subject to
the approval of relevant regulatory authorities.

Energy America sells gas and electricity to customers in Michigan, Ohio,
Maryland, Pennsylvania, New Jersey and Georgia and is one of the largest and
most successful unregulated retailers in the USA.

Roy Gardner, Chief Executive, of Centrica said; 'This is an important
milestone in our plans to offer a compelling energy proposition, superior
service, and customer choice to a rapidly increasing number of US households.
We aim to build on the excellent start Energy America has made over the last
two years'

Further information:

UKMedia enquiries      Tess Kershaw 01753 758443

Neville Barltrop       01753 758442

Investor enquiries     Chris Milburn 01753 758114

Canada Enquiries       Nick Fulford [phone] ex 3516

& USA or [phone]


Notes to Editors

  * Centrica plc is a leading supplier of energy and services at home and on
    the road, trading under the British Gas, Scottish Gas, AA and Goldfish
    brands. The acquisition of Canada's Direct Energy Marketing Limited, for £
    406m, in August this year, marked the first step in delivering its
    international strategy.
  * Direct Energy is North America's largest unregulated retailer of energy.
    The company supplies gas and electricity to homes and businesses in
    Canada.
  * To consolidate Direct Energy's ability to serve existing and future
    customers, Centrica acquired Avalanche Energy Limited earlier this month
    for C$253.5m (£114.5m) The Canadian gas producer was set up in 1997.
    Approximately 90 per-cent of the assets acquired are gas producing, the
    remainder are oil.