AGM Statement

Centrica PLC
14 May 2001


Centrica: Ready for the next stage of growth

Having maintained its position as Britain's leading energy supplier and
further expanded the range of services it offers customers, Centrica is in an
ideal position to deliver international expansion, shareholders were told at
the company's Annual General Meeting in London today.

Addressing the meeting at the Queen Elizabeth II Conference Centre, Chairman
Sir Michael Perry, reported 2000 had been another 'significant year' and that
the company was ready to move forward with its strategy for future growth at
home and abroad.

Sir Michael said: 'During the year we put in place several key elements of our
strategy for Centrica's future growth. At the same time, we made sure that our
core businesses continued to perform well.'


As evidence of this success he pointed to the company retaining almost 70% of
the residential gas market and attracting 4.3 million electricity customers,
whilst also introducing new services such as telecommunications and plumbing
cover.

'Our leading position in energy supply to the home enables us to develop a
range of other services to meet essential needs, offering reassurance and
better value for millions of customers. We have shown this approach works in
Britain, and we believe it is capable of succeeding just as well in other
parts of the world.'

Chief Executive Roy Gardner continued on this theme, outlining Centrica's
success to date in increasing the 'value of the company from £2.9 billion to £
9.3 billion' in four years.

According to Mr Gardner, this success was based on Centrica's three critical
competitive advantages; 'our ability to develop brands, to understand what
customers want, and to market and deliver new services efficiently.'

He pointed to the company's success in becoming the most recognised brand in
the electricity market and confidently predicted that Centrica would 'become
the largest domestic electricity supplier in Britain during the course of this
summer'.

On the integration of the AA, Mr Gardner reflected on the growth in roadside
assistance membership to a record level of 11.4 million, an increase of 19%
since the acquisition of the AA in 1999. He also highlighted the success of
the AA's financial services arm and its position as the UK's largest insurance
intermediary.

He added that financial services would be further strengthened through
Centrica's joint venture with Lloyds TSB and said that the first new products
from the Goldfish bank would be launched later in the year.

Turning to Centrica's international plans, Mr Gardner outlined successes
already achieved in North America, whilst also commenting that on the European
front, 'market liberalisation remains painfully slow'.

'We're now ready for our next stage of growth,' he added. 'We have in place a
clear strategy to capitalise on our core skills and assets. We have the
capabilities to make it happen. And in the first four months of this year
we've continued to grow the business in line with expectations.

'Our unparalleled expertise in competitive energy markets gives us an
outstanding foundation for expansion overseas. And with it, the potential to
significantly grow the Company.

'It's an exciting vision and one that I have every confidence we can deliver.'


Enquiries:

Centrica Investor Relations: 01753 758114

Centrica Media Relations: 01753 758445