US customer acquisition

Centrica PLC
15 July 2002


15 July 2002


Centrica agrees acquisition of NewPower customers

Centrica plc today announced that, following approval of the United States
Bankruptcy Court for the Northern District of Georgia, its wholly owned
subsidiary Energy America, LLC has agreed to acquire the gas customers of New
Power Holdings, Inc and its subsidiaries (NewPower) in Ohio and Pennsylvania for
an estimated consideration of $8.25 million (£5.31 million), subject to a price
adjustment as detailed below. NewPower currently has around 215,000 gas
customers in these markets.

Energy America has also agreed to acquire other specified assets including gas
inventory and certain computer systems relating to the customers being acquired,
which at 27 June 2002 had an estimated value at completion of $13.6 million
(£8.75 million).

The price that will ultimately be paid to NewPower is subject to an adjustment
for any shortfall in customers and the projected forward price curves for gas
between 13 June and completion, and to certain other adjustments. The
transaction is also subject to approvals by regulatory agencies.


Enquiries:

Centrica Investor Relations:      01753 494900

Centrica Media Relations: 01753 494085



Notes to editors and investors:

 1. Centrica announced on 25 February, that it had signed an agreement to acquire
    NewPower Holdings, Inc through a tender offer for all of NewPower's
    outstanding shares. Completion was subject to approval of the bankruptcy
    court overseeing Enron's Chapter 11 bankruptcy proceedings of the settlement
    of certain liabilities between NewPower and Enron, the termination of inter
    company agreements and the issuance of an injunction restraining third
    parties from making claims against New Power in respect of Enron-related
    liabilities subject to certain conditions.

 2. On 28 March, following Enron's failure to obtain from the bankruptcy court an
    order prohibiting claims of third parties with respect to potential
    Enron-related liabilities, Centrica informed NewPower that it had decided
    not to waive the applicable condition to Centrica's obligation to purchase
    NewPower shares in the tender offer. Accordingly, Centrica and NewPower
    agreed to terminate their merger agreement.

 3. NewPower filed for Chapter 11 Bankruptcy protection on 11 June, and
    accordingly the sale process was administered under the relevant sections of
    the Bankruptcy Code.

 4. Current customer details are as follows:

    Market                           Est. Total # Customers     Est. Avg. Annual Volume (DTh)    Est. Avg. Annual Bill1
                                                                Residential      Commercial

Columbia Gas of Ohio                               159,155            120               307                      $825

East Ohio Gas Co                                    14,588            118               451                      $651

Columbia Gas of Pennsylvania                        43,852            125               222                      $725

Total                                              217,595

    1 Estimated annual bill includes commodity portion only.

 5. Over 70 per cent of customers are on fixed contracts.

 6. The acquisition of the NewPower customer base provides an opportunity for the
    business' energy management team to build on its current procurement
    strategy. Centrica envisions no hurdles in securing reliable wholesale
    supply that adheres to its internal counterparty exposure and risk policies.


                      This information is provided by RNS
            The company news service from the London Stock Exchange