Chairman's AGM Statement

Centrica PLC
8 May 2000


Centrica: A momentous year

Centrica is building on its position as a leading UK
provider of products and services in the home and on the
road, 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
1999 had been a 'momentous year for Centrica', the
improvement in share price reflecting the financial
markets' view of the future potential of Centrica.

Sir Michael said: 'With the addition of the AA to our
portfolio of leading consumer brands we can now lay claim
to being the UK's leading provider of products and
services, not only in the home, but also on the road.'

He added real progress had been made in establishing
Centrica as the company that 'can take care of the
essentials through products offered under its leading
consumer brands.'

Chief Executive Roy Gardner told the meeting attention
was focused on future performance, and referred to
Centrica's plans to utilise e-commerce and to launch its
Telecoms offering in September. 'I am happy to be able to
report that so far this year the business performance is
very encouraging,' he said.

The overall number of energy customers was steadily
increasing and the company 'continued to benefit from
lower gas and electricity costs in our energy supply
business, although electricity is still in its investment
phase as we continue to build our customer base.'

'Home Services is maintaining its trend of profit growth,
supported by new product activity and we now have
contributions from Road Services and Financial Services
as a result of the acquisition of the AA last year.  At
this stage we are well in line with our plans and we have
a very clear view of the way ahead,' he said.

Three of the UK's strongest consumer brands, British Gas,
Goldfish and the AA, trusted by millions of customers,
would allow Centrica to continue to develop a range of
products and services.

He added Centrica was alert to opportunities presented by
the liberalisation of energy markets in Europe and the
United States.

'Our perspective is becoming increasingly international
and open-minded. We believe that our model for a consumer
services business positions us well for the future,' said
Mr Gardner.

Notes to Editors:

Preliminary results for the year ended 31 December 1999
reported:
- Turnover £7,217m
- Operating profit from continuing operations £365m
- Profit before tax, exceptionals and goodwill
  amortisation £417 m
- Earnings before exceptionals and goodwill amortisation
  £331m
- Operating cash flow before exceptionals £1,453m
- Earnings per share 4.3p
- Earnings per share before exceptionals and goodwill
  amortisation 7.9p
- Ordinary dividend per share 2.5p

Highlights from speeches

- By the end of 1999 British Gas had signed 2.6 million
  electricity customers and expects to be a larger supplier
  than any individual regional electricity company by the
  end of this year.

- The rate of loss of gas customers is slowing. Overall
  number of energy customers is steadily increasing.

- AA membership has reached record levels, more than 9.7
  million.

- Home Services division remains market leader in
  installation of domestic central heating systems and
  related home heating products.

- One of the largest installers of monitored home
  security systems in the UK.

- Now the UK's largest independent insurance intermediary
  with 1.6 million home and motor policies.

- Largest gas trader in the European wholesale market.
  Trading joint venture recently established with Dutch
  utility partner Essent.

Copies of the Chairman's and the Chief Executive's
addresses to the AGM are available on request. They will
also be published on the company's web site
www.centrica.co.uk.

For further information:
Media Relations:  01753 758442
Investor Relations:  01753 758114