Centrica PLC
24 August 2001
24 August 2001
Centrica acquires further electricity generation
Centrica plc today announced that it has entered into an agreement to acquire
the entire economic interest in two of TXU's gas-fired power stations in East
Anglia with a combined generation capacity of 705MW.
For a single up-front payment of £173.5 million, Centrica is acquiring,
operating leases of approximately 20 years on the two plants based in
Peterborough and King's Lynn. Centrica will assume responsibility for the day
to day operation and management of the power stations and 77 staff will
transfer to Centrica. The transaction will be funded from existing funds and
is expected to complete by the end of September 2001, subject to OFT approval.
This acquisition follows Centrica's purchase, in May, of a 60 per cent share
in Humber Power Limited, which owns and operates a 1260MW gas fuelled power
plant in Stallingborough. Together, the 1460MW capacity will provide Centrica
with more than 30 per cent of peak demand for its existing 4.5 million
electricity customers.
As part of its risk management strategy the company has said it plans to
source 20-25 per cent of its future peak electricity requirements from its own
generating capacity. This strategy offers increased long term stability and
protection against electricity price fluctuations and spikes.
Roy Gardner, Chief Executive of Centrica said: 'Following our acquisition of
Humber Power in May, today's transaction reinforces our commitment to grow our
electricity business and to continue offering customers a competitive package.
'Since the electricity market opened three years ago, we have attracted over
4.5 million customers and we're on course to reach our longer term target of 7
million customers.'
Enquiries:
Centrica Media Relations: 01753 758445
Centrica Investor Relations: 01753 758114
Notes to editors:
1. In Britain, energy and services group Centrica plc trades under the AA,
British Gas/Scottish Gas, Goldfish and One.Tel, brands. In Canada,
Centrica trades through the established Direct Energy brand and in the
United States through Energy America.
2. The acquisition will be funded from existing Centrica resources. There are
no net on-going payments due from Centrica to TXU under the transaction.
3. There are no gas supply or power off-take agreements associated with this
acquisition.
4. The employees will be employed by British Gas Power Generation Ltd.
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