Price Controls to Go as Gas Competition Develops

Centrica PLC
10 February 2000



Price Controls to Go as Gas Competition Develops

Centrica  plc  welcomed today's confirmation  that  industry
regulator Ofgem intends to remove price controls for British
Gas  direct debit customers from 1 April this year  and  for
all customers from 1 April 2001.

Mike  Alexander, Managing Director of British  Gas  Trading,
said:  'While  we  will have to work  hard  to  achieve  the
demanding reductions proposed today by Ofgem, we welcome the
intention to remove price controls for all gas customers.'

He  said  Ofgem's announcement was clear evidence  that  the
regulator  saw  competition was  working  well  in  the  gas
market.  It meant that from April, less than two years after
the  gas  market  was fully deregulated,  only  45%  of  all
domestic gas consumers would be subject to price regulation.

British  Gas  will now push ahead with plans to  remove  the
standing  charge  from  all  its  domestic  mains  gas   and
electricity bills, allowing customers to pay only  for  what
they use.

British  Gas  price  reductions will be announced  in  March
2000.

Enquiries

Neville Barltrop  Media Relations 01753  758 442
Lilas Allen       Media Relations 01753  758 399

Chris Milburn     Investor Relations 01753 758114


Notes to Editors

1.British Gas Trading Limited is a subsidiary of Centrica
plc.

2.Competition in the domestic gas market began in April
1996 and was fully rolled out nationally by May 1998.
Consumers have currently a choice of 26 suppliers.

3.British Gas Trading will formally respond to Ofgem's
proposals by 24 February.

Only nine million British Gas customers who do not pay by
direct debit would be subject to price controls from 1 April
2000.  This equates to around 45% of all domestic gas
consumers in Great Britain.

New lower prices will be announced by British Gas in March
2000.

Domestic price controls currently apply to small businesses
consuming less than 73,268 kWh p.a.