Interest in Income Fund

Centrica PLC
07 March 2003

7th March 2003



Centrica reduces holding in The Consumers' Waterheater Income Fund

Centrica plc confirmed today that, following its announcements of 9 December
2002 and 3 January 2003, an underwritten equity offering has been launched in
Toronto that will reduce Centrica's residual interest in The Consumers'
Waterheater Income Fund (the 'Fund') (TSX: CWI.UN) from 41.9 per cent to 19.9
per cent. When the offering, which is subject to customary underwriting
conditions, closes on or about 8 April, Centrica will receive C$112 million (£48
million) in net proceeds.

The independent Fund was established in order to purchase approximately 1.3
million waterheater assets, which Centrica obtained when it acquired Enbridge
Services Inc in May 2002. Upon completion of this secondary offering, Centrica
will have derived net proceeds of C$856 million (£364 million) from the
establishment of the Fund. We retain an equity interest of 19.9 per cent in the
fund (market value of C$111 million (£47 million) at close of business on 6
March, 2003).



Notes to editors

 1. The C$856 million of net proceeds is made up of C$500 million of debt, which
    is non-recourse to Centrica, raised by the Fund in order to purchase the
    waterheater assets and C$356 raised through the sale of units in the Fund.



Enquiries:

Centrica Investor Relations:            01753 494900

Centrica Media Relations:               01753 494085


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