Response to OFGEM Price Control Announcement

Centrica PLC
25 November 1999

RESPONSE TO OFGEM PRICE CONTROL ANNOUNCEMENT

Centrica plc welcomed today's proposals by industry regulator Ofgem to remove
price controls on British Gas Trading from April 2001, and to remove direct
debit customers from the controls as soon as April 2000.

Mike Alexander, Managing Director of British Gas Trading, said plans to lift
price controls at the end of only 12 months was evidence the regulator was
satisfied competition was working well.

However, these were only initial proposals.  The company would be considering
the implications and was looking forward to having detailed discussions with
Ofgem during the forthcoming consultation period.  It was therefore too early to
say what this meant for customers in terms of prices, he said.

Enquiries

Tess Kershaw          Media Relations          01753 758444
Chris Milburn         Investor Relations       01753 758114

Editor's notes

1.  British Gas Trading is a subsidiary of Centrica plc within Great Britain. 
Centrica also trades as Goldfish and the Automobile Association.

2.  Gas competition began in April 1996 and was fully rolled out nationally by
May 1998.  Domestic gas customers have a choice of 26 suppliers.

3. The current gas price controls came into effect in April 1997.

4.  British Gas last year absorbed the meter surcharge which would apply to
prepayment customers, ensuring these costs were the same as for other customers.
 British Gas prepayment prices have been cut three times since February 1998, a
reduction of more than 11 per cent in real terms.  British Gas prepayment prices
are among the lowest in the industry.

5.  This year's National Audit Office report showed healthy price competition. 
Customers had enjoyed savings of around £1 billion.  £800 million of those
savings had been made by British Gas customers.