Acquisition

Centrica PLC
4 December 2001


4 December 2001

Centrica secures electricity acquisition

Centrica plc has today announced that its subsidiary British Gas Trading
Limited has entered into an agreement with PricewaterhouseCoopers,
Administrators of Enron Direct Limited (EDL) (in administration) to acquire
its energy customer business and certain of its assets for a total
consideration of £96.4 million in cash.

EDL is principally engaged in the supply of electricity to commercial
customers. The acquisition is expected to be completed simultaneously.

EDL is a subsidiary of Enron Europe Limited (in administration) which is in
turn a subsidiary of Enron Corporation, the US parent company. EDL started
trading in 1996 and has grown rapidly. Turnover was £190 million for the 10
months to October 2001, up substantially from £97million in EDL's last full
financial year to December 2000 (unaudited).

EDL has 160,000 direct customers with longer term contracts of generally five
years duration. Additional customers are served through licensed
intermediaries. Operating assets being acquired, principally receivables, have
a value estimated at approximately £47 million. Based on Centrica's current
evaluation of EDL's customer base and balance sheet accounts, the cost per
acquired customer associated with this transaction, is estimated at £197 (net
of receivables outstanding and other benefits).

Mike Alexander, Managing Director of British Gas Trading, said: 'This provides
an ideal platform for advancing our plans for the commercial market. These
longer term contract customers represent an attractive additional market
segment for Centrica, with higher than average usage and annual bills of
approximately £1,300, more than five times the average domestic bill.

'This is an important acquisition in view of our aspirations in the small and
medium enterprise market. Our commercial electricity base, which currently
stands at 170,000 customers, will be almost doubled, bringing us closer to our
target of being number one supplier in that market.'

The increase in the volume and flattening of the profile of demand for power
will enable Centrica to realise further strategic and financial value from its
power stations.

Centrica will also have the opportunity to enhance and fully utilise EDL's
billing, customer care and energy forecasting systems. This will particularly
help Centrica to target the half-hourly metered electricity market.

Notes:

 1. Enron Direct Limited currently has 160,000 direct commercial customers,
    148,000 electricity and 12,000 gas customers. In addition, a further
    37,000 customers (primarily residential) are supplied through other
    service providers.
 2. Steven Anthony Pearson and three other partners of PricewaterhouseCoopers
    were appointed as administrators on 4 December, 2001.


Enquiries:

Centrica Media Relations:               01753 494085

Centrica Investor Relations:            01753 494900