Water heater asset 'Update'

Centrica PLC
01 November 2002


31 October, 2002



Centrica plc announces filing by Enbridge Services Inc. for Proposed Initial
Public Offering of The Consumers' Waterheater Income Fund

Enbridge Services Inc. (ESI) a subsidiary of Centrica plc, has filed a
preliminary prospectus in Canada with the Ontario Securities Commission for an
Initial Public Offering of trust units of The Consumers' Waterheater Income
Fund.

ESI intends to sell the water heater assets to the fund which will hold
ownership of all water heaters and other assets leased by ESI to customers and
will receive 65 per cent of rental charges made by customers. ESI will retain 35
per cent of revenues received from customers in relation to the water heaters.
The amount to be paid by the fund will not be determined until pricing and
closing of the offering which ESI anticipates will be mid-December 2002.

This proposed offering is consistent with earlier announcements by Centrica
regarding the refinancing of the water heater assets purchased as part of the
acquisition of ESI in May 2002. Upon closing of the offer, ESI will continue to
own an interest in the fund. The interest retained by ESI will not be determined
until closing of the transaction.

The preliminary prospectus is presently under review by Canadian securities
commissions and the Initial Public Offering has not yet been launched. There can
be no assurance that the offering will take place as it is subject to, inter
alia, prevailing market conditions and regulatory approvals. A further
announcement will be made in due course.



Notes to editors:

An income fund is an equity market product used in the Canadian capital markets,
differentiated from ordinary equity primarily in that the listed instrument is a
unit in a trust not a share in a corporation.

Enquiries:

Centrica Investor Relations:            01753 494900
                              
Centrica Media Relations:               01753 494085


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