North American home services

Centrica PLC
18 June 2001


18 June 2001



Centrica enters North American home services market

Centrica plc today announced that it has assumed full ownership of GreenSource
Limited, a company providing access to a network of private gas servicing and
installation contracting firms in Ontario. The transaction offers an
opportunity for Centrica to begin to replicate its UK model in Ontario,
launching home services in support of its energy business.

Centrica, which acquired a 30 per cent stake in GreenSource Ltd as part of its
acquisition of Direct Energy Marketing Limited (DEML) last year, has acquired
the remaining 70 per cent for a total consideration, including conditional
payments, of C$780,000.

The transaction offers Centrica an opportunity to develop its own home
services proposition under the GreenSource and Direct Energy brands, offering
installation of boilers and heating systems, maintenance and financing
options.

Direct Energy is the largest unregulated energy wholesaler in North America
and today's acquisition is a further sign of Centrica's commitment to
developing a home services package for DEML's existing energy customers, in
order to replicate the success of the Centrica model in Britain. DEML has more
than 900,000 gas customers in Canada and more than 400,000 customers have
already signed up for electricity in anticipation of the Ontario electricity
market opening.

Direct Energy Marketing Limited and Centrica's UK based Home Services Division
will be providing project management and other support services during the
transition phase.

Roy Gardner, Centrica's Chief Executive, said: 'This is an important first
step towards our longer term goals in North America, and is an excellent
strategic fit with our energy offering to customers in Ontario.

'Since its formation in 1997, Centrica has focussed on developing
relationships with its traditional gas customer base, successfully expanding
into new products and services. This is already proving successful in Britain
and we are now moving forward with this strategy in North America.'



Enquiries:

Centrica Media Relations:     01753 758445

Centrica Investor Relations:     01753 758114





Notes to editors:

 1. Centrica plc trades as British Gas, Goldfish and the AA in Britain and
    under the Direct Energy and Energy America brands in North America.
 2. GreenSource was formed in August 1998 and has a network of 110 private gas
    servicing and installation contracting firms in Ontario. To date it has
    acquired 1302 maintenance agreements and 495 finance agreements.
 3. GreenSource Limited owns a 75 per cent share in GreenSource Capital, a home
    services company. The remaining 25 per cent of GreenSource is owned by
    contractors who provide labour services to the company.